World shares and US futures surge as Nvidia's strong earnings restore
confidence in AI
[November 20, 2025] By
TERESA CEROJANO
MANILA, Philippines (AP) — World shares surged on Thursday after Nvidia
reported stronger than expected quarterly earnings, assuaging worries
that AI-driven stock prices may have shot too high.
The future for the S&P 500 was up 1.2%, while that for the Dow Jones
Industrial Average gained 0.5%.
In early European trading, Germany's DAX rose 0.8% to 23,351.45, while
Britain's FTSE 100 added 0.6% to 9,559.90. In Paris, the CAC 40 advanced
0.7% to 8,011.92.
In Asia, Japan’s Nikkei 225 index initially surged as much as 4.2%
before giving up some early gains. It closed nearly 2.7% higher at
49,823.94 as technology stocks rallied, with investor sentiment boosted
by Nvidia's report of $57 billion in quarterly revenue after trading
closed in the U.S., significantly above expectations.
South Korea’s Kospi added 1.9% to 4,004.85, with gains led by technology
and energy stocks. Investors were encouraged by Nvidia's earnings and
reports that the U.S. may delay planned semiconductor tariffs.
Samsung Electronics gained 4.2%, while SK Hynix added 1.6%.
Chinese markets ended mixed as reports said the government might be
planning more measures to try to revive the ailing property sector.
Hong Kong’s Hang Seng Index was barely changed at 25,835.57, while the
Shanghai Composite index lost 0.4% to 3,931.05 after China’s central
bank kept its one- and five-year loan prime rates unchanged at 3% and
3.5%, respectively.
Taiwan’s Taiex closed 3.2% higher while India's BSE Sensex added nearly
0.7%.
Australia's S&P/ASX 200 gained 1.2% to 8,552.70, also led by gains for
technology stocks.
On Wednesday, the U.S. stock market swung through another unsettled day
of trading, ahead of a couple of crucial tests for Wall Street.
The S&P 500 rose 0.4% after veering between a small loss and a leap of
1.1% earlier in the day. That broke a four-day losing streak, the
longest in nearly three months for the index, which has been shaking
because of worries that stock prices have shot too high and that the
Federal Reserve may not deliver as many cuts to interest rates as
expected.
The Dow industrials edged 0.1% higher, and the Nasdaq composite climbed
0.6%.
[to top of second column] |
A person rides a scooter in front of an electronic stock board
showing Japan's Nikkei index at a securities firm Thursday, Nov. 20,
2025, in Tokyo. (AP Photo/Eugene Hoshiko)
 The market’s remained on Nvidia.
Wall Street’s most influential stock climbed 2.8% as traders made
their final moves ahead of the chip company’s latest profit report,
which arrived after trading finished for the day. Nvidia surged 5.1%
in after-hours trading.
Nvidia is now the largest stock on Wall Street, having briefly
topped $5 trillion in value. That means its movements have more of
an effect on the S&P 500 than any other stock, and it can
single-handedly steer the index’s direction some days.
One way Nvidia can quiet criticism that it shot too high, which has
dragged its stock down by roughly 10% from late last month, is to
keep delivering bigger profits. That’s because stock prices tend to
track profits over the long term.
Nvidia has become a bellwether for the broader frenzy around
artificial-intelligence technology, because other companies are
using its chips to ramp up their AI efforts.
Traders also made their final moves ahead of a September jobs report
coming from the U.S. government on Thursday.
The job market has been slowing enough this year that the Fed has
already cut its main interest rate twice. Lower rates can give a
boost to the economy and to prices for investments, and the
expectation on Wall Street had been for more cuts, including at the
Fed’s next meeting in December.
But some Fed officials are hinting that they should pause next
month, in part because inflation has stubbornly remained above the
Fed’s 2% target. Lower interest rates can worsen inflation.
In other dealings early Thursday, US benchmark crude oil added 36
cents to $59.61 per barrel. Brent crude, the international standard,
rose 38 cents to $63.89 per barrel.
The U.S. dollar climbed to 157.20 Japanese yen from 157.06 yen. It
has been trading at nearly the highest level this year on
expectations that the government will delay efforts to rein in
Japan's national debt as Prime Minister Sanae Takaichi raises
spending to help spur the economy.
The euro fell to $1.1525 from $1.1538.
All contents © copyright 2025 Associated Press. All rights reserved |
