Update: the relief rally did not last.
Fears of a growing bubble around the artificial intelligence frenzy resurfaced by the close of trading on Thursday as leading US stock markets fell.
The benchmark S&P 500 closed down 1.6%, and the Dow Jones industrial average closed down 0.8% in New York. The tech-focused Nasdaq Composite closed down 2.2%.
Closing summary
Time to wrap up…
Global stock markets are rising after the US economy added more jobs than forecast in September, and Nvidia beat Wall Street expectations.
The US market is sharply higher, with the Dow Jones industrial average now up 692 points or 1.5% at 46,830.
Investors pushed the market higher after new data showed the US jobs market added 119,000 jobs in September.
Amid heightened uncertainty surrounding the strength of the US economy, the much-anticipated reading was higher than the 51,000 jobs expected by analysts to be added in September.
The unemployment rate, meanwhile, ticked up from 4.3% to 4.4%: its highest level since 2021. And a previous estimate for jobs growth in August was downgraded – revealing an unexpected decline in the US workforce.
Stocks had already rallied across Asia-Pacific markets overnight, and in Europe. In London, the FTSE 100 is now up 83 points or 0.9% at 9591 points.
Shares in Nvidia are up 4% after the chipmaker dismissed fears of an AI bubble, beat forecasts for sales growth, and gave an upbeat outlook.
CEO Jensen Huang insisted that the artificial intelligence transformation had legs, telling analysts:
“AI is going everywhere, doing everything, all at once.”
