CNBC Daily Open: Expectations can be an irrational thing. Just look at Nvidia

Markets digest Nvidia earnings 
U.S. markets rose connected Thursday aft digesting Nvidia's net release. Its shares roseate conscionable 0.5%. Alphabet slumped 4.7% connected the U.S. Department of Justice calling for Google to divest Chrome.  The pan-European Stoxx 600 added 0.41%, ending a four-day losing streak. British sports retailer JD Sports plunged 15.5% aft informing astir its yearly profit. 

Bitcoin inches towards $100,000 
Bitcoin broke the $99,000 barrier connected Thursday earlier retreating to astir $98,600. The cryptocurrency has been connected occurrence since Donald Trump won the predetermination due to the fact that of his perceived crypto-friendly stance. Galaxy Digital CEO Michael Novogratz thinks it's "inevitable" bitcoin volition transverse the $100,000 milestone, but "there volition beryllium a correction." 

Fed mightiness incur Trump's ire 
There are signs that the U.S. disinflation process is slowing. Couple that with Trump's planned policies, which are seen arsenic inflationary, and the U.S. Federal Reserve mightiness determine to support involvement rates unchanged. That, successful turn, could choler Trump, who berated Fed officials during his archetypal word successful bureau for not relaxing monetary argumentation rapidly enough.  

No Bluesky for billionaires 
Bluesky has risen successful popularity successful tandem with Elon Musk's ascending prominence successful U.S. politics. That mightiness enactment the societal media platform, which functions similar Musk's X and Meta's Threads, successful the crosshairs of acquirers. But Bluesky is "billionaire proof," CEO Jay Graber told CNBC. "If idiosyncratic bought oregon if the Bluesky institution went down, everything is unfastened source." 

[PRO] Focus connected Nvidia's Blackwell 
Despite Nvidia's gross maturation rising astatine a slower pace each consequent quarter, analysts are inactive optimistic connected the stock. Many adjacent raised their terms target for Nvidia due to the fact that of the chipmaker's next-generation Blackwell chip, which is successful specified blistery request that proviso is struggling to conscionable it, according to Nvidia Chief Financial Officer Colette Kress.  

With Nvidia's earnings retired of the way, markets tin instrumentality to a semblance of regular programming aft a period of frenzy that included the U.S. presidential elections, the Fed bringing rates down by 25 ground points, Russia ratcheting up its nuclear rhetoric, to notation conscionable a fewer events. 

U.S. markets took everything successful their stride and took a fewer dependable steps guardant connected Thursday. The S&P 500 roseate 0.53%, the Dow Jones Industrial Average climbed 1.06% and the Nasdaq Composite was mostly flat. 

"I deliberation markets are yet uncovering their footing for 2 reasons: One is betterment from that postelection hangover aft the archetypal week, and [two is] absorption to Nvidia's earnings," Nuveen CIO Saira Malik told CNBC. 

Nvidia reported an unthinkable – by astir standards – third-quarter fiscal report. Its gross astir doubled twelvemonth connected twelvemonth and nett income soared. 

But we cognize already investors' barroom for Nvidia is determination beyond the stratosphere. Impressive arsenic Nvidia's net are, investors were inactive enactment disconnected by a operation of the chipmaker's slowing complaint of maturation and a comparatively blimpish projection for its income ahead. 

Nvidia shares ticked up conscionable 0.5% aft falling successful premarket trading. 

By mode of comparison, let's look astatine information analytics bundle Snowflake. Its fiscal third-quarter revenue roseate 28% twelvemonth connected twelvemonth (remember that Nvidia's jumped 94%) and the company's nett nonaccomplishment widened. But investors were truthful pumped they pushed up its banal 32.7% to springiness Snowflake its champion time ever. 

That discrepancy mightiness look baffling. But it's not antithetic for the markets, wherever expectations dictate stock movements.  

If investors expect a institution to marque a immense nonaccomplishment and it manages to marque a dollar successful profit, shares are apt to rise. An exaggeration, but still. That's conscionable regular programming for markets. 

— CNBC's Jesse Pound, Samantha Subin and Alex Harring contributed to this report.