NEW YORK / RankWire.AI / – The recent recovery in Wall Street’s technology sector gained fresh momentum after Nvidia announced its quarterly earnings on Wednesday. On Tuesday, major U.S. indices experienced gains as technology and semiconductor stocks rebounded from the previous session’s downturn. The S&P 500 increased by 0.31% to 7,676.62, while the Nasdaq Composite moved up 0.64% to 26,145.47. The Dow Jones Industrial Average also rose 0.29% to 53,572.91. These gains reignited enthusiasm for technology equities ahead of one of the most closely watched earnings reports in the market.
Shares of Nvidia climbed 2.2% on Tuesday, with AMD jumping 4.9% and Meta Platforms increasing by nearly 2%. The Philadelphia semiconductor index saw a 1.4% rise, reflecting broad-based gains among chip manufacturers. During the session, Treasury yields declined, and oil prices also experienced a dip. These shifts coincided with renewed investor interest in large technology stocks following Monday’s pullback. The upward move supported all three major U.S. indexes in closing higher as investors awaited corporate earnings reports and economic data.
Wall Street then concluded Wednesday’s trading session nearly flat before Nvidia released its results after the close. The Dow dipped 0.21%, the S&P 500 declined by 0.02%, and the Nasdaq Composite decreased 0.08%. U.S. economic data revealed that the personal consumption expenditures price index rose 3.7% in July compared to the previous year. Excluding food and energy, core PCE inflation grew 3.3% over the same period. Personal spending increased by 0.2% in July, while personal income rose 0.4%.
Nvidia earnings spark continuation of technology market rally
Nvidia reported a fiscal second-quarter revenue of $96.22 billion for the period ending July 26, marking an 18% increase from the previous quarter and a 106% rise compared to the same period last year. Revenue from Data Center reached $89.0 billion, a 117% year-over-year increase. The company posted GAAP net income of $59.69 billion and diluted earnings of $2.46 per share. Its GAAP gross margin was 75.0%, up from 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 outlook assumes no Data Center compute revenue from China. Expected GAAP and non-GAAP gross margins are 74.0%, plus or minus 50 basis points. During the second quarter, Nvidia returned approximately $26.0 billion to shareholders through share repurchases and dividends. At quarter-end, about $99.0 billion remained available under its authorized share repurchase plan.
Markets in the U.S. digest earnings and inflation data
Following its earnings release and conference call, Nvidia’s stock increased by 4.7% in after-hours trading. U.S. futures also moved higher during Asian trading Thursday. Several Asian markets saw gains in technology shares after Nvidia disclosed its revenue growth and outlook. The market activity reflected the contrasting sessions on Wall Street, with Tuesday’s technology-led rally followed by narrow declines on Wednesday. Earnings reports from semiconductor companies and inflation figures in the U.S. continued to influence global equity trading.
The latest economic data provided additional context to the Tuesday rally, which centered on Nvidia’s performance expectations. Both revenue and Data Center sales more than doubled from the same quarter a year earlier. Nvidia’s forecast for the third quarter exceeds its second-quarter revenue by nearly $12 billion at the midpoint. The broader U.S. market entered Thursday after a near-flat finish on Wednesday and gains driven by technology stocks on Tuesday. These latest figures represent the most recent confirmed corporate and economic data following the two Wall Street sessions.