US stocks ended a choppy session higher on Wednesday, rebounding from recent losses as technology stocks rose before chipmaker Nvidia reported after markets closed that its fourth quarter revenue would be higher than Wall St estimates.
US indexes briefly pared gains after minutes from the last Federal Reserve meeting showed policymakers had cautioned that lower borrowing costs could undermine the fight against inflation. The Fed cut rates by a quarter of a percentage point at each of its meetings in September and October.
Worries about a cooling labour market persisted ahead of Thursday's release of the September US jobs report following the record government shutdown.
The US Bureau of Labor Statistics said it would not publish the October employment report, but will instead combine non-farm payrolls for that month with November's report.
Shares in Nvidia, now the world’s most valuable company, gained during normal training, with its earnings seen as a test for the artificial intelligence-driven rally that has powered the market to record highs this year.
Nvidia reported third quarter revenue of $US57 billion, up 62 per cent year on year, topping average estimates of $US54.92 billion. Nvidia’s chips are a critical component in the data centres powering AI and shares in the company continued gaining in extended trading after it said it expected fiscal fourth-quarter sales of $US65 billion, ahead of analysts expectation of $US61.66 billion.
The stock is "almost guaranteed to be volatile," following the report, said Tim Ghriskey,
The Dow Jones Industrial Average rose 47.03 points, or 0.10 per cent, to 46,138.77, the S&P 500 gained 24.87 points, or 0.38 per cent, to 6,642.19 and the Nasdaq Composite gained 131.38 points, or 0.59 per cent, to 22,564.23.
Investors have worried about how companies will be able to make money from their huge investments in AI and concerns about Nvidia’s outlook had weighed on US markets earlier in the week.
