Markets Teeter Ahead of Nvidia Earnings, Fed Data and AI Bubble Checks

Global markets entered a fragile phase today as investors pivoted into a “hold-pat” mode ahead of key catalysts: Nvidia Corporation’s quarterly earnings and the delayed U.S. labour-market report. Asian equities struggled, the U.S. tech sell-off deepened, and hopes for a December rate cut by the Federal Reserve diminished sharply — the probability of a move now stands at about 42 %.

The Nasdaq Composite dropped 1.2% overnight, taking its losses to over 6% from recent peaks. Futures for the S&P 500 and Nasdaq 100 slipped further as caution spread. In Asia, Japan’s Nikkei 225 was flat after giving up earlier gains, and Hong Kong’s index fell 0.5% amid global risk-off flows.

At the heart of the concern is Nvidia: the chip-giant’s results are being viewed as a litmus test for AI-driven enthusiasm in the tech sector. Strong revenue growth is expected (~56% to about $54.9 billion), but any signs of slowing demand or margin pressure could trigger broader de-rating across tech names. Simultaneously, the U.S. jobs data delay leaves the Fed with limited guidance — making policy clues even more speculative and heightening market vulnerability.

This cocktail of valuation risk, macro opacity and sector concentration has put markets on edge. The positive backdrop of AI-led growth remains, but near-term traders appear more focused on hedging than buying. Until definitive signals arrive — either through corporate guidance or fresh data — price action may remain choppy and prone to sharp reversals.