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Stocks stuck on rollercoaster despite strong Nvidia earnings

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Stocks stuck on rollercoaster despite strong Nvidia earnings

By Dhara Ranasinghe
Publication Date: 2025-11-20 14:06:00

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NEW YORK/LONDON, Nov 20 (Reuters) – Nvidia’s strong earnings report offered only a brief reprieve for stocks on Thursday, as doubts about the return on relentless artificial intelligence investment and lofty valuations on Wall Street had global markets on edge.

Initial relief across world stocks from surprisingly strong results on Wednesday from AI darling Nvidia (NVDA.O), opens new tab turned sour.

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Investors refocused on the risks that have pulled major U.S. equity indexes off the record highs hit late last month. The Nasdaq Composite (.IXIC), opens new tab and S&P 500 (.SPX), opens new tab had their biggest intraday swings since the extreme volatility set off by President Donald Trump’s “Liberation Day” tariff announcement in April.

“This is a coordinated risk-off trade — tech stocks, crypto, etc on worries about valuations and leverage,” said Mark Hackett, chief market strategist at Nationwide. “The fact that it is an intraday decline rather than a drop at the open suggests exhaustion.”

Nvidia’s upbeat results did not dispel concern around a fall back to earth for highly-valued tech stocks, amid lingering concerns about whether AI spending will pay off.

Nvidia’s results “are encouraging and support the AI story,” said Angelo Kourkafas, senior global investment strategist at Edward Jones. “But…

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