NEW YORK / RankWire.AI / – This week’s resurgence in Wall Street’s technology sector gained additional support following Nvidia releasing its quarterly earnings on Wednesday. As a result, major U.S. indices experienced gains Tuesday, fueled by a recovery in technology and semiconductor stocks from the previous day’s dip. The S&P 500 increased by 0.31% to reach 7,676.62. The Nasdaq Composite climbed 0.64% to 26,145.47, and the Dow Jones Industrial Average added 0.29%, ending at 53,572.91. These improvements reinvigorated technology shares ahead of one of the market’s most anticipated earnings reports.
Shares of Nvidia advanced 2.2% on Tuesday, while AMD saw a 4.9% rise and Meta Platforms gained nearly 2%. The Philadelphia semiconductor index increased by 1.4%, indicating widespread gains among chipmakers. During the session, Treasury yields declined, and oil prices also fell. These shifts reflected renewed investor interest in large technology stocks following Monday’s downturn. The rally contributed to all three major U.S. indexes ending higher as investors awaited corporate earnings reports and economic updates.
On Wednesday, Wall Street closed nearly flat before Nvidia announced its earnings after the close. The Dow dipped 0.21%, the S&P 500 decreased by 0.02%, and the Nasdaq Composite fell 0.08%. U.S. data revealed that the personal consumption expenditures (PCE) price index increased by 3.7% in July compared to the previous year. The core PCE inflation, which excludes food and energy costs, rose by 3.3% during the same period. Personal spending in July grew by 0.2%, while personal income went up by 0.4%.
Nvidia earnings catalyze tech sector rebound
For the period ending July 26, Nvidia reported fiscal second-quarter revenue of $96.22 billion, reflecting an 18% increase from the previous quarter and a 106% rise year over year. Revenue from Data Center sales reached $89.0 billion, up 117% from the same quarter last year. The company recorded GAAP net income of $59.69 billion and diluted earnings per share of $2.46. Its GAAP gross margin improved to 75.0%, compared with 72.4% in the year-ago quarter.
Looking ahead, Nvidia projected fiscal third-quarter revenue of $108.0 billion, plus or minus 2%. The forecast assumes no Data Center compute revenue from China. It also expects GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points. During the second quarter, Nvidia returned approximately $26.0 billion to shareholders through share repurchases and cash dividends. As of quarter-end, about $99.0 billion remained under its authorized share repurchase program.
Market reactions to earnings and inflation data
Following its earnings report and conference call, Nvidia shares increased by 4.7% in after-hours trading. U.S. equity futures also moved upward during Asian trading on Thursday. Several Asian markets saw gains in technology shares after Nvidia released its revenue figures and outlook. The market movements followed two contrasting Wall Street sessions, with Tuesday’s technology rally giving way to narrower declines on Wednesday. Key influences on global equity trading included semiconductor earnings and U.S. inflation statistics.
These latest economic figures added context to Tuesday’s rally, which had been driven by expectations surrounding Nvidia’s earnings. Both revenue and Data Center sales more than doubled compared to the same quarter last year. Nvidia’s third-quarter outlook surpassed its second-quarter revenue total by nearly $12 billion at the midpoint. The broader U.S. market entered Thursday after a nearly flat finish on Wednesday and gains driven by technology stocks on Tuesday. These data points represent the most recent confirmed corporate and economic updates following the two Wall Street sessions.