NVIDIA ignites risk appetite as markets close the week on a stronger footing
NVIDIA's strong results drive sentiment higher as investors had began to doubt the AI narrative.
Markets head into the end of the week with renewed optimism after Nvidia delivered another blockbuster earnings report, easing fears around AI spending and reinvigorating sentiment across the technology sector. The results acted as a catalyst for broader risk assets, shifting the tone from cautious to constructive in what had been an increasingly uncertain macro environment.
Nvidia delivers, again
Nvidia’s latest earnings once again exceeded already lofty expectations. Revenue and earnings both comfortably beat forecasts, driven by stronger-than-anticipated data centre sales. Concerns that margins would begin to compress under the weight of aggressive scaling and higher infrastructure costs proved premature, with profitability holding up better than feared.
Perhaps the most significant takeaway was forward guidance. Despite markets already pricing in extraordinary year-on-year growth, Nvidia projected revenue for the next quarter well above consensus estimates. CEO Jensen Huang reiterated the “exponential” demand for compute power, reinforcing the narrative that AI infrastructure spending remains in full acceleration mode. The results reset a narrative that had begun to tilt overly bearish in recent sessions, where concerns around overspending, diminishing returns and intensifying competition had weighed on valuations.
NVIDIA’s shares jumped higher after the earnings result but failed to claim the $200 mark, which had been an important psychological level set by many prior to the earnings release. The path of least resistance remains on the upside, but investors should be aware of increasing resistance which may limit the bullish drive.
NVIDIA daily chart
Past performance is not a reliable indicator of future results.
Equity markets end the week stronger
The broader equity market responded positively. The Nasdaq pushed higher, breaking out of its recent consolidation range, while the S&P 500 advanced toward its own record territory. The strength in mega-cap tech provided a strong underpinning for indices, easing fears that the AI rally had run out of steam.
While structural questions remain, particularly around capital expenditure discipline among hyperscalers, the earnings report has, at least temporarily, shifted focus back to growth momentum. Short-term bearish positioning appears to have been squeezed, contributing to a more constructive close to the week.
Investors also appear more comfortable leaning into risk following a period where macro concerns, including trade uncertainty and sticky inflation data, had dampened enthusiasm. Nvidia’s results reminded markets that corporate earnings growth, particularly in AI-related sectors, remains a powerful driver of equity performance.
Gold pauses as risk appetite improves
Gold, which had recently benefited from geopolitical tensions and renewed trade uncertainty, is ending the week on a steadier, slightly softer footing. As equity markets strengthened and risk appetite returned, safe-haven demand eased somewhat.
However, the broader backdrop remains supportive for the precious metal. Structural uncertainty around trade policy, geopolitical risks and fiscal sustainability continues to underpin longer-term demand. Rather than signalling a reversal, the late-week consolidation in gold appears more reflective of short-term risk rotation than a shift in its underlying bullish narrative.
Gold (XAU/USD) daily chart
Past performance is not a reliable indicator of future results.
Dollar stabilises but faces structural questions
The US dollar is ending the week relatively stable, though without a decisive breakout. While improved risk sentiment could typically weigh on the dollar, support has come from resilient US data and ongoing policy uncertainty elsewhere.
That said, the dollar’s trajectory remains sensitive to broader themes. Persistent trade unpredictability and questions around fiscal dynamics continue to cap upside momentum. If risk appetite remains firm and growth expectations stabilise globally, the dollar may struggle to regain strong upward traction. Conversely, any renewed geopolitical or macro stress could quickly revive safe-haven flows.
US dollar index (DXY) daily chart
Past performance is not a reliable indicator of future results.
Sentiment shifts, for now
As the week closes, the key takeaway is the shift in sentiment. Nvidia’s earnings have acted as a powerful reminder that structural growth drivers, particularly around AI, remain intact. Equity markets have responded by regaining upward momentum, while defensive assets like gold have eased modestly and the dollar has steadied.
While underlying macro uncertainties have not disappeared, the tone into the weekend is notably more constructive. Whether this optimism proves durable will depend on the evolution of growth, inflation and geopolitical developments in the weeks ahead. For now, however, Nvidia has once again demonstrated its ability to move not just its own share price, but broader market sentiment.