The S&P 500 and Nasdaq Composite posted their best session since Aug. 4 as Nvidia's earnings beat and strong revenue guidance lifted the broader tech trade. Nvidia added roughly $440 billion in market value after forecasting steep growth for its next fiscal year, while the Dow Jones Industrial Average posted a smaller gain.
The S&P 500 advanced 0.72% to close at 7,730.99 on Thursday. The Nasdaq Composite rose 1.57% to 26,541.35, the best day since Aug. 4 for both indexes. The Dow Jones Industrial Average added 105.56 points, or 0.2%, to finish at 53,569.44.
Nvidia drives the rally
Nvidia shares jumped 8.7% after the chipmaker beat analyst estimates. It forecast revenue growth of 70% for fiscal 2028, well above the 44% growth that analysts surveyed by LSEG expected. The rally added about $440 billion to Nvidia's market capitalization, a move that suggested the chipmaker could buck its recent pattern of falling the day after earnings, a trend seen in each of the previous four quarters despite meeting or beating estimates.
CEO Jensen Huang said AI "reached its inflection point", noting that the number of companies that need large clusters of chips has expanded dramatically.
Rally masks narrow breadth
Despite the index gains, S&P 500 breadth was negative as travel-related stocks lagged, pressured by rising oil prices and signs the U.S. will step up pressure on Iran's economy. Traders are also awaiting Federal Reserve Chairman Kevin Warsh's Friday speech at the Jackson Hole symposium for clues on the interest rate path.
Sources: CNBC, CNBC, investingLive
Trading involves risk.
Risk Disclaimer
