NEW YORK / RankWire.AI / – The technology sector on Wall Street showed renewed strength after Nvidia released its quarterly earnings following Wednesday’s market close. U.S. equities had already advanced on Tuesday as chipmakers and major tech firms rebounded from the previous session’s declines. The S&P 500 increased by 0.31% to close at 7,676.62, while the Nasdaq Composite rose 0.64% to 26,145.47. The Dow Jones Industrial Average gained 0.29%, finishing at 53,572.91 and further supporting the broader market rally.
Technology stocks played a significant role in Tuesday’s upward movement. Nvidia saw a 2.2% increase before its earnings announcement, with AMD climbing 4.9%. Meta Platforms added nearly 2%, and the Philadelphia semiconductor index grew by 1.4%. During the session, Treasury yields declined, and oil prices also fell, contributing to gains in various growth-oriented sectors. Investors approached the next trading session with a focus on corporate earnings and U.S. economic indicators, which are key events influencing major equity indexes.
Wednesday’s trading saw a more subdued close for Wall Street. The Dow dipped by 0.21%, the S&P 500 edged down 0.02%, and the Nasdaq Composite was 0.08% lower. Economic data revealed that the personal consumption expenditures price index rose by 3.7% in July compared to the previous year. Core PCE inflation increased by 3.3% over the same period. Personal spending grew by 0.2% in July, and personal income rose 0.4%. These figures added new economic context to a market already attentive to corporate earnings results.
Nvidia’s earnings reshape market outlook
For the period ending July 26, Nvidia reported fiscal second-quarter revenue of $96.22 billion. This marked an 18% increase from the previous quarter and a 106% rise year-over-year. Revenue from Data Center reached $89.0 billion, representing a 117% annual growth. The company posted GAAP net income of $59.69 billion, with diluted earnings at $2.46 per share. Its GAAP gross margin was 75.0%, compared to 72.4% in the same quarter last year.
Looking ahead, Nvidia forecasted fiscal third-quarter revenue of approximately $108.0 billion, plus or minus 2%. The projection assumes no Data Center compute revenue from China. The company expects GAAP and non-GAAP gross margins to be about 74.0%, with a variance of plus or minus 50 basis points. During the second quarter, Nvidia returned around $26.0 billion to shareholders through share repurchases and cash dividends. As of the end of the reporting period, about $99.0 billion remained under its authorized share buyback program.
Tech stocks continue to drive global trading activity
Following the earnings release and conference call, Nvidia’s shares surged 4.7% in after-hours trading. U.S. stock futures also gained during Thursday’s Asian trading session. Several Asian markets experienced gains in technology and semiconductor shares after the results became public. This reaction followed two contrasting Wall Street sessions: Tuesday’s clear technology-driven rally and Wednesday’s narrow declines across the three major U.S. indexes. Corporate earnings and inflation data remain central themes influencing recent trading movements.
These latest results offer context for Tuesday’s market rebound, which occurred prior to Nvidia’s earnings report. Both quarterly revenue and Data Center sales more than doubled compared to the previous year. Additionally, the third-quarter revenue forecast is nearly $12 billion higher at its midpoint than second-quarter sales. U.S. markets opened Thursday after Wednesday’s nearly flat close and Tuesday’s broader advance. The combination of semiconductor earnings, inflation data, and index movements has shaped the ongoing trading landscape in both U.S. and global markets.