NEW YORK / RankWire.AI / – This week’s rebound in Wall Street’s technology sector was reinforced after Nvidia announced its quarterly earnings on Wednesday. The major U.S. indices experienced gains Tuesday as technology and semiconductor stocks recovered from the decline seen in the previous session. 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, and the Dow Jones Industrial Average advanced 0.29% to 53,572.91. These upward moves helped rejuvenate momentum in technology shares before one of the most closely monitored earnings reports of the season.
On Tuesday, Nvidia shares went up by 2.2%, with AMD jumping 4.9% and Meta Platforms climbing nearly 2%. The Philadelphia semiconductor index experienced a 1.4% increase, reflecting widespread gains among chipmakers. During the same session, Treasury yields declined, and oil prices also edged lower. These shifts coincided with renewed investor interest in large technology stocks following Monday’s pullback. The rebound contributed to all three major U.S. indexes closing higher as investors eagerly awaited upcoming corporate earnings reports and economic data releases.
By Wednesday, Wall Street’s markets had nearly stagnated before Nvidia released its earnings figures after the closing bell. The Dow dipped 0.21%, the S&P 500 slipped 0.02%, and the Nasdaq Composite decreased 0.08%. In the meantime, U.S. data revealed that the personal consumption expenditures price index increased by 3.7% in July compared to the previous year. Excluding food and energy, core PCE inflation was up 3.3% over the same period. Personal spending saw a modest rise of 0.2% in July, while personal income grew by 0.4%.
Nvidia’s earnings release sustains the technology rally
Nvidia reported revenue of $96.22 billion for its fiscal second quarter ending July 26, representing an 18% increase from the previous quarter and a 106% rise year-over-year. Revenue from Data Center operations reached $89.0 billion, which is up 117% compared to the same quarter last year. The company announced GAAP net income of $59.69 billion, with diluted earnings per share of $2.46. Its GAAP gross margin was reported at 75.0%, compared to 72.4% for the same quarter last year.
For the upcoming fiscal third quarter, Nvidia provided a revenue outlook 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, and 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 through share repurchases and cash dividends, leaving around $99.0 billion available under its authorized share buyback program at the close of the quarter.
Markets react to earnings and inflation reports in the U.S.
Following its earnings announcement and conference call, Nvidia’s shares surged 4.7% in after-hours trading. U.S. stock futures also moved upward during Asian trading on Thursday. Technology stocks across multiple Asian markets gained ground after Nvidia detailed its revenue growth and outlook, continuing the trend from Tuesday’s tech-led rally which was interrupted by narrow declines on Wednesday. The overall market focus remained on semiconductor earnings and U.S. inflation data, both of which significantly influence global equity trading activity.
These latest economic figures provided additional context to Tuesday’s rally, which had been primarily driven by expectations surrounding Nvidia’s report. Both revenue and Data Center sales more than doubled compared to 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. As Thursday began, the broader U.S. market reflected on Wednesday’s nearly flat close and Tuesday’s tech-fueled gains, marking the latest confirmed set of corporate and economic indicators released after two significant Wall Street sessions.