S&P 500: Tech Stocks Rally as Nvidia Recovers and Bitcoin Hits $98K

Stock futures turned positive Thursday morning, with investors buying into Nvidia’s dip and responding to record-breaking Bitcoin prices. Nasdaq-100, S&P 500, and Dow Jones Industrial Average futures each advanced 0.5%, reversing earlier losses as traders reacted to earnings reports and macroeconomic data.

Nvidia Gains After Initial Dip

Nvidia’s third-quarter earnings exceeded Wall Street expectations, reporting $35.08 billion in revenue and adjusted earnings of $0.81 per share. However, initial market reactions focused on decelerating revenue growth compared to prior quarters, sparking a temporary dip. As analysts maintained bullish outlooks and raised price targets, shares rebounded in premarket trading, up 2% by early morning.

Bitcoin surged past $98,000 for the first time late Wednesday, boosting sentiment across cryptocurrency-related equities. Factors driving the rally included heightened expectations for crypto-friendly regulatory policies under a potential second Trump presidency and short liquidations exceeding $88 million overnight.

Crypto-related stocks followed suit. MicroStrategy, often seen as a Bitcoin proxy, rose 11%, while Coinbase added 4%. Mining companies like Mara Holdings and platforms like Robinhood also gained significantly, up 9% and over 3%, respectively. The rally’s momentum was fueled by high funding rates in futures markets and reduced premiums in spot trading, signaling sustained bullish activity.

Mixed Economic Data Highlights Labor Market Stability

Initial jobless claims for the week ending November 16 fell to 213,000, beating forecasts of 220,000 and signaling ongoing resilience in the labor market. However, continuing claims rose to 1.908 million, above the expected 1.883 million, suggesting potential early signs of strain.

Meanwhile, the Philadelphia Fed’s regional manufacturing index dropped sharply to -5.5 in November from +10.3 in October, undershooting expectations of +6.9. This decline reflects emerging economic headwinds despite the overall strength in employment metrics.

Notable Pre-Market Movers

• Snowflake surged over 21% on strong third-quarter results, reporting $0.20 adjusted earnings per share on $942 million in revenue, surpassing estimates.
• Palo Alto Networks fell 2% after providing inline guidance and announcing a 2-for-1 stock split.
• BJ’s Wholesale Club rose nearly 8% after raising full-year guidance and initiating a $1 billion share buyback program.

Market Forecast

The combination of Nvidia’s recovery and Bitcoin’s historic rally has reinvigorated risk appetite, likely propelling tech-heavy indices higher in the short term. However, mixed economic data points to potential volatility ahead. Traders should monitor upcoming economic reports and Fed commentary for further direction. A cautiously bullish outlook appears warranted, particularly in tech and crypto-related sectors.