29 Sept 2025
Global financial markets experienced varied movements following Nvidia's strong Q3 earnings report and ongoing legal developments between Lisa Cook and Donald Trump. Nvidia's impressive performance, particularly in its Data Center segment, contrasted with its stock's decline, while key indices in the US, China, and Europe saw gains despite some regional downturns.
Nvidia's Q3 earnings report, released after Wednesday's market close, showed strong financial performance, with revenue of $46.7 billion matching predictions and EPS exceeding expectations at $1.54. The company's total revenue grew by 56% year-over-year, primarily driven by its Data Center segment, which contributed $40.1 billion and grew 56% compared to the previous year. The Gaming segment also showed significant growth, contributing $4.2 billion with nearly 50% annual growth, while operating expenses totaled $5.4 billion, including $4.3 billion in R&D costs. Nvidia achieved a net profit of $26.4 billion, resulting in a 57% net margin, which improved by 10% year-over-year.
Lisa Cook and her legal team initiated a lawsuit against Donald Trump concerning her dismissal from the Federal Reserve, arguing the action was unjustified and lacked legal basis. Ms. Cook formally filed a legal case against President Trump, which is anticipated to reach the Supreme Court, although the specific federal court for the filing remains undisclosed. Her status within the Federal Reserve remains unclear throughout the legal proceedings, with even the Federal Reserve refraining from a definitive stance on her ability to perform duties or access her office. The case's resolution will decide if Ms. Cook continues her tenure until 2038 or if Mr. Trump prevails, potentially replacing her with an individual like Stephen Moore to increase his influence over the Fed's monetary policy.
Global financial markets displayed mixed results, with U.S. indices like the S&P 500 and Nasdaq Composite both rising by approximately 2.2%, while the Russell 2000 gained 1.6%. Despite Nvidia's positive earnings, its stock experienced an 11% decline during regular trading and nearly 2.5% in after-hours trading. Other notable U.S. stock movements included Albemarle's 7% rise due to an improved lithium price outlook, Cracker Barrel's 8% gain from a logo change, and MongoDB's 38% surge following an excellent earnings report and increased profit forecasts. In Asia, the Shanghai Composite advanced 1.1% to near multi-year highs, and China's Cambrian Technologies saw its stock climb 15.7% after record revenue growth with government support. Conversely, the Hang Seng Index in Hong Kong dropped 7.7% due to pressure from technology stocks like Meituan and JD.com, and Taiwan's TAIEX fell 0.84%, with TSMC's stock declining 2.5%. European markets, represented by the Stoxx 600, increased by 1.0%, driven by strong corporate reports and reduced concerns about AI demand following Nvidia's financial results. Japan's Nikkei 225 grew by 7.2% and Australia's S&P/ASX 200 saw a 2% increase.
The outcome of the legal case will determine whether Ms. Cook continues her work at the Federal Reserve until 2038 or if Mr. Trump's victory leads to her replacement, potentially altering the Fed's monetary policy direction.
| Event/Company | Key Insight/Outcome | Impact/Reason | Market Segment |
|---|---|---|---|
| Nvidia Q3 Earnings | Strong financial performance, matched revenue, beat EPS ($1.54). | 56% Y-o-Y growth, Data Center segment as main driver ($40.1B, 88% of sales). | Technology, Global |
| Nvidia Stock Performance | Dropped 11% (regular hours), ~2.5% (after-hours). | Despite strong earnings report, stock declined post-announcement. | Technology, US |
| Lisa Cook Lawsuit | Legal action filed against Trump for dismissal from Federal Reserve. | Challenges legality of dismissal, potential Supreme Court case, Cook's status ambiguous. | Politics, US Economy |
| Albemarle | Over 7% stock growth. | Improved lithium price outlook. | Materials, US |
| Cracker Barrel | 8% stock growth. | Decision to change company logo. | Retail/Hospitality, US |
| MongoDB | 38% stock growth. | Excellent earnings report and increased annual profit forecast. | Technology, US |
| Shanghai Composite | 1.1% growth, nearing multi-year highs. | Overall positive sentiment in Chinese market. | Equities, China |
| Cambrian Technologies | 15.7% stock growth, new revenue record. | Government support and strong revenue growth. | Technology (Chips), China |
| Hang Seng Index | 7.7% decline. | Pressure from major tech stocks (Meituan -11.5%, JD.com -4%). | Equities, Hong Kong |
| TSMC | 2.5% stock decline. | Part of overall TAIEX fall, major global chip producer. | Technology (Chips), Taiwan |
| Stoxx 600 (Europe) | 1.0% growth. | Positive corporate reports (e.g., Pernod Ricard) and reduced AI demand concerns. | Equities, Europe |
| Nikkei 225 (Japan) | 7.2% growth. | Positive performance in Japanese market. | Equities, Japan |
| S&P/ASX 200 (Australia) | 2% growth. | Positive performance in Australian market. | Equities, Australia |
