NEW YORK / RankWire.AI / – The resurgence of technology stocks on Wall Street this week was reinforced by Nvidia‘s quarterly earnings announcement on Wednesday. On Tuesday, major U.S. indexes rebounded as shares in technology and semiconductor sectors recovered from declines experienced in the previous session. The S&P 500 increased by 0.31% to close at 7,676.62. The Nasdaq Composite gained 0.64% to reach 26,145.47, and the Dow Jones Industrial Average rose 0.29% to end at 53,572.91. These gains rejuvenated momentum in technology stocks ahead of one of the market’s most anticipated earnings reports.
Shares of Nvidia climbed 2.2% on Tuesday, with AMD jumping 4.9% and Meta Platforms advancing nearly 2%. The Philadelphia semiconductor index increased by 1.4%, reflecting widespread gains across chip manufacturers. During the session, Treasury yields declined, and oil prices also moved lower. These shifts coincided with renewed investor appetite for large technology stocks following Monday’s pullback. The recovery enabled all three major U.S. indexes to close higher as investors awaited corporate earnings reports and upcoming economic data.
On Wednesday, Wall Street markets closed nearly flat before Nvidia’s earnings report was released after the closing bell. The Dow decreased by 0.21%, the S&P 500 dipped 0.02%, and the Nasdaq Composite fell 0.08%. Data from the U.S. showed the personal consumption expenditures price index increased by 3.7% in July from the previous year. The core PCE inflation, which excludes food and energy costs, rose 3.3% over the same period. In July, personal spending rose by 0.2%, while personal income increased by 0.4%.
Nvidia earnings highlight the technology recovery
For the fiscal second quarter ending July 26, Nvidia reported revenue of $96.22 billion, marking an 18% increase from the previous quarter and a 106% rise from the same period last year. Revenue from the Data Center segment reached $89.0 billion, up 117% year-over-year. The company’s GAAP net income was $59.69 billion, with diluted earnings per share of $2.46. Its GAAP gross margin was 75.0%, compared to 72.4% in the same quarter of the previous year.
Looking ahead, Nvidia provided a fiscal third-quarter revenue forecast of $108.0 billion, plus or minus 2%. The company clarified that this projection assumes no Data Center compute revenue from China. It anticipates 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. At quarter’s end, about $99.0 billion remained available under its authorized share repurchase program.
Market Reaction to Earnings and Inflation Data
Following its earnings release and conference call, Nvidia shares surged 4.7% in after-hours trading. During Thursday’s Asian trading session, U.S. equity futures also edged higher. Several Asian markets saw advances in technology stocks, driven by Nvidia’s revenue growth and outlook. The recent market movement was shaped by two contrasting Wall Street sessions, with Tuesday’s technology-led rally giving way to narrower declines on Wednesday. Key developments influencing global equities included semiconductor earnings and U.S. inflation figures.
The latest economic data provided context for Tuesday’s rally, which had been largely centered around Nvidia’s financial results. Both revenue and Data Center sales more than doubled compared to the same quarter last year. Additionally, Nvidia’s third-quarter forecast exceeds its second-quarter revenue by nearly $12 billion at the midpoint. The broader U.S. market entered Thursday after a near-flat close on Wednesday and gains driven by technology stocks on Tuesday. These figures represent the newest confirmed corporate and economic indicators following the two Wall Street sessions.