By George Glover

Nvidia stock was climbing ahead of Wednesday's opening bell, recovering some ground after stronger-than-expected economic data triggered a Big Tech selloff.

Shares in the chip designer rose 1.9% to $140.14 in premarket trading. Futures tracking the benchmark S&P 500 index were up 0.3%.

Nvidia stock tumbled 6.2% in the previous session, wiping out about $200 billion worth of market capitalization.

The plunge came shortly after red-hot jobs numbers fueled investors' fears that the Federal Reserve won't cut interest rates by much this year. The Bureau of Labor Statistics said November job openings rose to 8.1 million, which was ahead of economists' expectations at 7.7 million, according to FactSet.

When the labor market is strong, there's less incentive for the Fed to cut rates -- and higher borrowing costs tend to particularly weigh on tech stocks by chipping away at the future cash flows that make up a core part of their valuation.

The stock was roughly unchanged before the job openings numbers were published, suggesting investors weren't too fazed by Nvidia CEO Jensen Huang launching a new suite of graphics gaming cards at the CES tech trade show in Las Vegas on Monday.

He does appear to have impacted other parts of the market though -- shares in the quantum computing companies Rigetti, IonQ, and Quantum Computing Inc. tumbled after Huang said during a Q&A session Tuesday that the usage of the tech could still be decades away.

Write to George Glover at george.glover@dowjones.com

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January 08, 2025 05:51 ET (10:51 GMT)

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