NEW YORK / RankWire.AI / – Following a week of gains, Wall Street’s technology sector saw renewed momentum after Nvidia announced its quarterly results on Wednesday. The major U.S. indexes had increased on Tuesday as shares of technology and semiconductor firms recovered from the previous session’s downturn. The S&P 500 climbed 0.31% to 7,676.62. The Nasdaq Composite advanced 0.64% to 26,145.47, while the Dow Jones Industrial Average rose 0.29% to 53,572.91. These gains revitalized the upward trend in technology stocks just ahead of one of the market’s most closely watched earnings reports.
On Tuesday, Nvidia shares increased by 2.2%, with AMD jumping 4.9%, and Meta Platforms climbing nearly 2%. The Philadelphia semiconductor index also gained 1.4%, indicating widespread improvements across chip manufacturers. During the session, Treasury yields declined and oil prices moved lower. These shifts accompanied a renewed appetite for large technology stocks following Monday’s pullback. The rebound helped all three major U.S. indexes close higher as investors looked ahead to upcoming corporate earnings and economic data releases.
Wall Street mostly remained flat on Wednesday before Nvidia unveiled its earnings results after the market closed. The Dow decreased by 0.21%, the S&P 500 dipped 0.02%, and the Nasdaq Composite dropped 0.08%. U.S. data showed that the personal consumption expenditures price index rose 3.7% in July compared to the previous year. Excluding food and energy, core PCE inflation increased by 3.3% over the same period. Personal spending increased by 0.2% in July, while personal income grew by 0.4%.
Nvidia earnings follow technology sector rebound
Nvidia reported fiscal second-quarter revenues of $96.22 billion for the period ending July 26, marking an 18% increase from the previous quarter and a 106% rise from the same quarter last year. Revenue from Data Center operations hit $89.0 billion, up 117% year over year. The company posted GAAP net income of $59.69 billion and earnings per share of $2.46. Its GAAP gross margin was 75.0%, compared to 72.4% in the same quarter last year.
Looking ahead, Nvidia provided a fiscal third-quarter revenue projection of $108.0 billion, with a margin of plus or minus 2%. The company clarified that this forecast assumes no Data Center compute revenue from China. It 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 via share repurchases and cash dividends. As of quarter-end, about $99.0 billion remained available under its authorized share buyback program.
Markets digest earnings and inflation reports amid mixed sessions
Following the earnings release and conference call, Nvidia shares rose 4.7% in after-hours trading. U.S. stock futures also climbed during Asian trading on Thursday. Technology shares saw gains across several Asian markets after Nvidia disclosed its revenue growth and outlook. The trading sessions on Wall Street contrasted sharply, with Tuesday’s tech-led rally followed by a narrow decline on Wednesday. The main factors influencing global equity markets included semiconductor earnings reports and inflation data from the U.S.
Recent figures provided additional context for Tuesday’s rally, which was driven primarily by expectations surrounding Nvidia’s results. Both revenue and Data Center sales more than doubled compared to the same quarter last year. Nvidia’s guidance for the third quarter exceeded its second-quarter revenue by nearly $12 billion at the midpoint. As Thursday began, the broader U.S. market reflected on Wednesday’s nearly flat close and Tuesday’s gains driven by technology stocks. These latest corporate and economic data remain the key confirmed developments shaping investor sentiment after the two Wall Street sessions.