A global relief rally swept through stock markets on Thursday, November 20, 2025, after AI chipmaker Nvidia reported stronger-than-expected earnings, alleviating concerns about an overinflated tech bubble that had recently erased $3 trillion from global valuations.
Asian markets led the rebound, with European and U.S. futures following suit, as investors reacted to Nvidia CEO Jensen Huang’s upbeat outlook and record-breaking revenue forecast. Huang dismissed concerns of an “AI bubble,” describing demand for the company’s advanced processors as “unprecedented.”
The chipmaker’s forecast far exceeded Wall Street expectations, prompting a broad-based recovery across global equities.
“It’s fair to say that Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day,”
said Jim Reid, strategist at Deutsche Bank.
Tech Stocks Drive Global Rally
Europe’s technology index (.SX8P) rose 1.8%, buoyed by gains in semiconductor giants Infineon and ASML, both climbing around 2.8%. AI equipment makers Schneider Electric and Siemens Energy added 2% and 4%, respectively.
In Asia, Japan’s Nikkei 225 closed 2.6% higher, South Korea’s KOSPI advanced 1.9%, and Taiwan’s benchmark index jumped 3.2%, powered by a 4% surge in TSMC shares.
In the U.S., Nasdaq and S&P 500 futures rose 1.7% and 1.3%, respectively, extending Wednesday’s late-session rebound that had snapped a four-day losing streak.
The rally gained additional momentum following a Reuters report that Washington might delay planned semiconductor tariffs in an effort to ease trade tensions with China.
Japan’s Yen Under Pressure Amid Stimulus Plan
Currency and bond markets were unsettled by reports that Japan’s Prime Minister Sanae Takaichi plans to introduce the country’s largest stimulus package since the COVID-19 pandemic.
Japanese government bond yields surged to record highs, while the yen fell to ¥157.60 per dollar, its weakest level in ten months. The currency also hit a record low against the euro.
Since Takaichi’s election, the yen has depreciated more than 6%, as investors express concern over rising debt levels linked to the proposed stimulus.
“It’s going to be a crucial session going into the weekend to see if they can stop the bleeding here,”
said John Hardy, FX strategist at Saxo Bank, drawing parallels to the pound’s sharp selloff under the short-lived Liz Truss government in 2022.
Meanwhile, the U.S. dollar index (.DXY) gained 0.2% to 100.25, hovering near a six-month high. The yield on 10-year U.S. Treasury notes edged up to 4.14%, from 4.13% on Wednesday.
Investors Await Delayed U.S. Jobs Report
Traders are now turning their attention to the delayed U.S. jobs report for September, expected later in the day, which could offer clues about the Federal Reserve’s next interest rate decision.
Minutes from the Fed’s October meeting revealed officials were divided, cutting rates despite concerns that easing too quickly could “entrench inflation” and erode public confidence in monetary policy.
According to CME Group’s FedWatch Tool, markets are pricing a 33% probability of a 25-basis-point cut at the December 10 policy meeting, down from 50% a day earlier.
“That’s six days after the December FOMC meeting, and that’s why the 12 or 13 basis points of rate cuts that were priced in for December… have immediately evaporated,”
said Gavin Friend, senior market strategist at National Australia Bank.
Commodities and Crypto Mixed
In commodities, Brent crude edged higher to $63.6 per barrel after a 2% fall on Wednesday, as traders assessed new U.S. proposals to help end the war in Ukraine and awaited a deadline restricting operations with two major Russian oil firms.
Bitcoin rebounded 1.8% to trade just above $92,200, while Ether gained 1.5% to $3,033.
Gold prices fluctuated sharply after an early rise; spot gold slipped 0.4% to $4,064.04 per ounce.
