U.S. stock-index futures moved sharply higher in after-hours trading on Wednesday after Nvidia delivered another strong earnings report, providing relief to markets that had remained cautious throughout the session. Nasdaq 100 futures gained nearly 1%, while S&P 500 and Dow Jones futures rose around 0.6% and 0.5%, respectively. The move suggests that Nvidia’s results have temporarily eased concerns over whether elevated AI valuations can still be supported by strong corporate earnings. Nvidia reported revenue of $96.2 billion, well above expectations, while its outlook also pointed to continued strength in AI infrastructure spending.

The reaction is particularly important for the Nasdaq and broader technology sector, which had recently come under pressure from rising Treasury yields and concerns over stretched valuations. The stronger-than-expected Nvidia outlook could provide fresh momentum for semiconductor and AI-related stocks, while also supporting the wider S&P 500 given Nvidia’s significant index weighting. However, the positive earnings reaction comes against a more challenging macro backdrop: July PCE inflation came in at 3.7%, above expectations and well above the Fed’s 2% target, keeping uncertainty around monetary policy elevated. Attention will therefore remain on Friday’s Jackson Hole speech, as a hawkish message from the Fed could limit the upside created by Nvidia’s results.