NEW YORK / RankWire.AI / – Following Nvidia’s announcement of its quarterly results after Wednesday’s market close, Wall Street’s technology rally gained renewed momentum. Already on the rise Tuesday, U.S. equities saw chipmakers and other major tech giants bounce back from previous declines, with the S&P 500 climbing 0.31% to close at 7,676.62. The Nasdaq Composite rose 0.64% to 26,145.47, while the Dow Jones Industrial Average increased by 0.29%, ending at 53,572.91 and extending the overall market recovery.
Technology shares drove much of Tuesday’s gains. Nvidia advanced 2.2% before its earnings report, while AMD grew by 4.9%. Meta Platforms added nearly 2%, and the Philadelphia semiconductor index went up 1.4%. During the session, Treasury yields declined, as did oil prices, supporting several growth-oriented sectors. Investors headed into the next trading session with corporate earnings and U.S. economic indicators among the key events influencing major equity indexes.
Wall Street experienced a notably calmer close on Wednesday, with the Dow dropping 0.21%, the S&P 500 slipping 0.02%, and the Nasdaq Composite finishing 0.08% lower. Economic reports revealed the personal consumption expenditures price index increased 3.7% in July compared to the previous year, while core PCE inflation rose 3.3% over the same period. Personal spending grew by 0.2%, and personal income expanded by 0.4%. These figures added new economic context to a market already focused on corporate earnings.
Nvidia earnings reshape market outlook
Nvidia announced fiscal second-quarter revenue of $96.22 billion for the period ending July 26, representing an 18% increase from the previous quarter and a 106% rise year-over-year. Its Data Center revenue hit $89.0 billion, up 117% annually. The company reported GAAP net income of $59.69 billion, with diluted earnings per share of $2.46. Its GAAP gross margin improved to 75.0%, from 72.4% in the same quarter last year.
Looking ahead, Nvidia projected fiscal third-quarter revenue of $108.0 billion, plus or minus 2%, assuming no Data Center compute revenue from China. The company anticipates GAAP and non-GAAP gross margins around 74.0%, plus or minus 50 basis points. During the second quarter, Nvidia returned roughly $26.0 billion to shareholders through share buybacks and dividends, with about $99.0 billion remaining under its authorized repurchase program at the period’s end.
Global markets still rely on tech performance
Following the earnings release and conference call, Nvidia’s shares increased by 4.7% in after-hours trading. U.S. stock futures also gained during Asian trading on Thursday. Many Asian markets saw advances in technology and semiconductor stocks after the results became known, reflecting two contrasting Wall Street sessions: Tuesday’s strong technology-led rebound and Wednesday’s narrow declines across the three main U.S. indexes. Corporate earnings reports and inflation data continue to be key drivers in recent trading dynamics.
The recent results provided additional context for Tuesday’s Wall Street rebound, which occurred before Nvidia’s earnings were announced. Both quarterly revenue and Data Center sales more than doubled compared to the previous year, and the third-quarter revenue forecast is nearly $12 billion higher at its midpoint than second-quarter sales. U.S. markets entered Thursday after a nearly flat Wednesday and a broader Tuesday advance, with semiconductor earnings, inflation figures, and index movements shaping the latest phase of trading across U.S. and international markets.