# AI chips go to the moon, US stocks follow suit.

NVIDIA's Q3 revenue of $57.1 billion exceeded expectations, with Q4 guidance of $65 billion (expected $62 billion), directly igniting the FOMO sentiment across the entire market.

Today, U.S. stocks rose across the board: the S&P 500 increased by 1.74%, the Nasdaq 100 climbed by 2.09%, with Nvidia leading the pack with a gain of over 4%. The chip sector was in full swing — Palantir and Broadcom surged over 4%, AMD and ARM rose over 3%, while Intel and Applied Materials increased by over 2%.

The economic outlook is also strong: September non-farm payroll data came in at 119,000, exceeding expectations (expected 51,000), but the unemployment rate unexpectedly rose to 4.4% (a four-year high), which has led the market to increase the probability of a rate cut by the Federal Reserve at the FOMC meeting on December 10 from 25% to 35%. The yield on the 10-year U.S. Treasury bond fell to 4.11%.

The earnings season is nearing its end, with 460 companies in the S&P 500 having reported their results, of which 82% exceeded expectations—this is the strongest performance since 2021. Overall earnings growth for Q3 is 14.6%, far exceeding the expected 7.2%.

Walmart is also strong, raising its sales forecast for fiscal 2026 to 4.8%-5.1% (up from 3.75%-4.75%), with its stock price soaring 5%. On the other hand, Bath & Body Works is a cautionary tale, with Q3 sales falling short of expectations, a significant EPS downgrade, and a stock price plummeting 24%.