The Mighty Nvidia Reports and Now the Market Has Some Issues to Sort Out

A healthy snap-back rally was developing on Wednesday until President Trump mentioned imposing tariffs on Europe once again. His comments were confusing because it wasn't clear whether he was referring to tariffs in addition to the reciprocal tariffs he had already promised.

The uncertainty helped to kill the bounce, but there were still some minor gains in the indexes, and breadth was positive. There were 300 new 12-month lows to about 140 new highs.

The good news is that the lows held, but now the issue is whether the mighty Nvidia NVDA can help rejuvenate the uptrend.

There are some mixed earnings after the bell, with Snowflake SNOW initially bouncing big while Salesforce CRM is selling off.

Nvidia jumped initially on revenue and EPS beats as well as increased guidance, but this is not a blowout report, and the spike was quickly sold. The big question now will be the conference call. While it looks like an OK report, it's likely not good enough to cause much chasing.

The bigger issue will be whether the Nvidia report calms some of the market concerns about AI infrastructure spending and DeepSeek. Nvidia doesn't need huge growth as long as demand remains steady.

It is likely that Nvidia analysts will be pleased and raise price targets again, but it is unlikely that the stock is going to see the same sort of momentum it enjoyed last year. Nvidia is now more of a value play than a growth play.

I sold down some of the Nvidia I have been holding.

The market will have some issues to sort out Thursday, but for now, there are signs of support, and that is a good start.

At the time of publication, Rev Shark was long NVDA.