NEW YORK / RankWire.AI / – The rally on Wall Street’s technology sector gained momentum after Nvidia announced its quarterly results following the close of trading on Wednesday. U.S. equities had already experienced gains on Tuesday as chipmakers and other large tech giants rebounded from the previous day’s decline. The S&P 500 rose 0.31%, closing at 7,676.62. The Nasdaq Composite climbed 0.64% to 26,145.47. Meanwhile, the Dow Jones Industrial Average increased by 0.29%, finishing at 53,572.91, contributing to the broader market recovery.
Technology equities drove much of Tuesday’s upward movement. Nvidia’s stock advanced 2.2% ahead of its earnings report, while AMD grew by 4.9%. Meta Platforms saw a near 2% increase, and the Philadelphia semiconductor index rose 1.4%. During the session, Treasury yields declined, and oil prices also fell. This combination supported gains across several growth-oriented sectors. Investors headed into the next trading day amid anticipation of corporate earnings and U.S. economic indicators that are set to influence the major equity indexes.
Wednesday’s market activity was notably subdued. The Dow decreased by 0.21%, while the S&P 500 slipped just 0.02%. The Nasdaq Composite closed 0.08% lower. Economic reports indicated that the personal consumption expenditures price index rose 3.7% in July compared to the previous year. Core PCE inflation increased by 3.3% over the same period. Personal spending rose 0.2% in July, and personal income increased by 0.4%. These figures added new economic context to a market that was already focused on corporate earnings results.
Nvidia’s Earnings Brighten Market Outlook
Nvidia reported fiscal second-quarter revenues of $96.22 billion for the period ending July 26. This represented an 18% increase from the previous quarter and a 106% rise compared to the same period last year. Data Center revenue reached $89.0 billion, which is a 117% year-over-year jump. The company posted GAAP net income of $59.69 billion, with diluted earnings of $2.46 per share. Its GAAP gross margin improved to 75.0%, up from 72.4% in the same quarter a year earlier.
Looking ahead, Nvidia forecasted fiscal third-quarter revenue of around $108.0 billion, plus or minus 2%. This projection assumes no Data Center compute revenue from China. The company expects GAAP and non-GAAP gross margins to be approximately 74.0%, with a variance of 50 basis points. During the second quarter, Nvidia returned approximately $26.0 billion to shareholders through share repurchases and dividends. At the end of the quarter, about $99.0 billion remained available under its authorized share repurchase program.
Tech Stocks Continue to Lead Global Market Movements
Following the earnings release and conference call, Nvidia’s shares gained 4.7% in after-hours trading. U.S. futures also traded higher during Asian markets on Thursday. Several Asian markets saw increases in technology and semiconductor stocks after the results became public. The reaction highlighted the contrasting trading sessions on Wall Street, with Tuesday showing a clear technology-led rally and Wednesday ending with minimal declines across the three main U.S. indexes. Corporate earnings reports and inflation data remained at the forefront of recent market activity.
The latest earnings results provided additional context for Tuesday’s rebound, which occurred prior to the official earnings announcement. Both quarterly revenue and Data Center sales more than doubled compared to the previous year. The third-quarter revenue outlook was nearly $12 billion higher at its midpoint than second-quarter sales. U.S. equities closed Thursday after Wednesday’s nearly flat session and Tuesday’s broader advance. The interplay of semiconductor earnings, inflation statistics, and major index movements characterized the current phase of trading in U.S. and global markets.