NVIDIA Stock Reverses as Strong Jobs Report Clouds December Rate-Cut Hopes

Wall Street opened Thursday on an upbeat note after NVIDIA (NASDAQ: NVDA) delivered another round of blockbuster earnings and bullish guidance, fueling optimism around the ongoing AI boom. But the market’s early enthusiasm quickly faded by midday as a stronger-than-expected U.S. jobs report tempered expectations for a December Federal Reserve rate cut, triggering a sharp reversal in major tech stocks.

The delayed September nonfarm payrolls report showed the economy adding 119,000 jobs—more than double economist forecasts of 50,000. As analysts digested the data, concerns grew that resilient labor conditions could push the Fed to hold rates steady at the upcoming December 10 FOMC meeting. Morgan Stanley further weighed on sentiment with a note stating it no longer expects policymakers to cut rates this year, citing a “sharp and broad rebound in payrolls.”

At the same time, skeptics seized on potential weaknesses in NVIDIA’s AI-driven growth story. Bears pointed to a significant jump in accounts receivable, rising from $23.065 billion to $33.391 billion, raising questions about customer payment cycles and the sustainability of demand. They also highlighted the company’s heavy revenue concentration: four customers each contributed more than 10% of total sales during the quarter, with the largest accounting for 22%.

Short seller Mike Burry accused the AI ecosystem of relying on “circular deals” and described true end demand as “ridiculously small,” urging investors to scrutinize relationships between NVIDIA, OpenAI, and other major players. Reports indicate Deloitte serves as OpenAI’s U.S. auditor.

Despite initially jumping more than 5% on its earnings release, NVIDIA’s stock closed down over 3%, erasing roughly $392 billion in market value in a single session. Goldman Sachs analysts noted that such strong results failing to lift the stock is “typically a bad sign,” adding that a surge in Oracle credit default swaps—now triple their previous levels—signals growing skepticism around AI-related risk exposure.