Futures are up sharply following NVDA’s better-than-expected earnings alleviated concerns about the prospects for AI-related companies.

The overnight meltup was good for 80 or so points on ES. Another 20 points were added on when September’s jobs data was released, showing that unemployment had ticked up from 4.3% to 4.4%, the highest since Oct 2021. Average hourly earnings rose from 3.7% to 3.8% and hours worked remained stable.

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The jobs data should bolster the FOMC hawks’ case for a December hold. Note that ES has popped back above its neckline. SPX should, too.

VIX is back to a critical level of support – the SMA200 and white channel bottom.VX is also back to its SMA200.

Although EURUSD is little changed……USDJPY continues its breakout, allowing DXY to pop above its SMA200. A rising DXY is net negative for stocks. But, because it’s coming courtesy of the cheapening yen, a yen carry trade rally has been triggered.

continuing…