NEW YORK / RankWire.AI / – Wall Street’s recent rally in technology stocks gained further support after Nvidia announced its quarterly results on Wednesday. The major U.S. indices climbed on Tuesday as shares in the technology and semiconductor sectors recovered from the previous session’s decline. The S&P 500 increased by 0.31% to close at 7,676.62. The Nasdaq Composite went up 0.64% to 26,145.47, while the Dow Jones Industrial Average rose 0.29% to 53,572.91. These gains revitalized momentum in technology stocks ahead of one of the market’s most closely watched earnings reports.
Shares of Nvidia increased by 2.2% on Tuesday, while AMD jumped 4.9% and Meta Platforms gained nearly 2%. The Philadelphia semiconductor index added 1.4%, reflecting widespread gains among chipmakers. During the session, Treasury yields declined, and oil prices moved downward. These shifts accompanied renewed enthusiasm for large technology stocks after Monday’s pullback. The rebound allowed all three major U.S. indexes to finish higher as investors awaited corporate earnings and economic data releases.
Wall Street closed nearly flat on Wednesday before Nvidia released its earnings after the market closed. The Dow decreased by 0.21%, the S&P 500 dipped 0.02%, and the Nasdaq Composite fell 0.08%. U.S. reports showed the personal consumption expenditures price index rose 3.7% in July compared to the previous year. Core PCE inflation, which excludes food and energy, increased 3.3% over the same period. Personal spending in July grew by 0.2%, and personal income increased by 0.4%.
Nvidia earnings highlight the tech sector’s rebound
Nvidia announced fiscal second-quarter revenue of $96.22 billion for the period ending July 26. This was an 18% increase from the previous quarter and a 106% rise from a year earlier. Data Center revenue hit $89.0 billion, up 117% year over year. The company reported GAAP net income of $59.69 billion and diluted earnings of $2.46 per share. Its GAAP gross margin was 75.0%, compared to 72.4% in the same quarter last year.
Looking ahead, Nvidia provided a fiscal third-quarter revenue forecast of $108.0 billion, plus or minus 2%. The company stated that this estimate assumes no Data Center compute revenue from China. It expects GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points. During the second quarter, Nvidia returned roughly $26.0 billion to shareholders via share buybacks and dividends. As of quarter-end, about $99.0 billion remained under its authorized share repurchase plan.
Markets digest earnings and inflation reports
Following its earnings release and conference call, Nvidia shares increased by 4.7% in after-hours trading. U.S. stock futures also rose during Asian trading on Thursday. Technology stocks gained in several Asian markets after Nvidia published its revenue growth and outlook. The market’s recent movements reflected two contrasting Wall Street sessions, with Tuesday’s tech rally giving way to narrow declines on Wednesday. Semiconductor earnings and U.S. inflation figures remain key factors influencing global equity markets.
These latest data points also provided context for Tuesday’s rally, which was driven by expectations around Nvidia’s results. Revenue and Data Center sales more than doubled compared to the same quarter last year. Nvidia’s third-quarter forecast surpasses its second-quarter revenue by nearly $12 billion at the midpoint. The broader U.S. market entered Thursday after Wednesday’s near-flat close and Tuesday’s gains driven by technology. These figures represent the newest confirmed corporate and economic data following the recent Wall Street sessions.