NEW YORK / RankWire.AI / – This week’s rally in Wall Street’s technology sector was reinforced after Nvidia announced its quarterly earnings on Wednesday. U.S. major indices experienced gains Tuesday as shares in the technology and semiconductor sectors rebounded from the previous session’s drop. The S&P 500 increased by 0.31% to 7,676.62, while the Nasdaq Composite moved up 0.64% to 26,145.47, and the Dow Jones Industrial Average rose 0.29% to 53,572.91. These upward moves restored momentum to tech stocks ahead of one of the most anticipated earnings reports in the market.
On Tuesday, Nvidia shares advanced 2.2%, AMD jumped 4.9%, and Meta Platforms saw an increase of nearly 2%. The Philadelphia semiconductor index gained 1.4%, indicating widespread gains among chip manufacturers. During the session, Treasury yields declined, and oil prices moved downward as well. These shifts accompanied renewed interest in large technology equities following Monday’s pullback. The market’s recovery contributed to all three major U.S. indexes closing higher, as investors looked ahead to upcoming corporate earnings and economic reports.
On Wednesday, Wall Street ended nearly unchanged before Nvidia’s earnings were released after the closing bell. The Dow declined 0.21%, the S&P 500 dipped 0.02%, and the Nasdaq Composite fell 0.08%. Data released in the U.S. showed the personal consumption expenditures price index increased 3.7% in July compared to the previous year. The core PCE inflation, which excludes food and energy, went up 3.3% over the same period. Personal spending was up 0.2% in July, while personal income increased by 0.4%.
Nvidia earnings boost technology sector rally
Nvidia reported fiscal second-quarter revenue 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 reached $89.0 billion, up 117% year over year. The company posted GAAP net income of $59.69 billion and diluted 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 forecast of $108.0 billion, plus or minus 2%. The company noted that this outlook assumes no Data Center compute revenue from China. It expects GAAP and non-GAAP gross margins of 74.0%, with a variance of plus or minus 50 basis points. During the second quarter, Nvidia returned approximately $26.0 billion to shareholders through share buybacks and cash dividends. As of quarter-end, about $99.0 billion remained available under its authorized share repurchase program.
Markets in the U.S. digest earnings results and inflation figures
Following the earnings announcement and conference call, Nvidia’s shares increased by 4.7% in after-hours trading. U.S. stock futures also moved higher during Asian trading Thursday. Technology stocks gained in multiple Asian markets after the company released its revenue figures and outlook. This market activity followed two contrasting Wall Street sessions, with Tuesday’s tech rally giving way to modest declines on Wednesday. Earnings reports from the semiconductor sector and inflation data from the U.S. remain some of the main factors influencing global equity trading.
The latest economic data provided additional context to Tuesday’s rally, which was driven largely by expectations for Nvidia’s report. Revenue and Data Center sales both more than doubled compared to the same quarter last year. Nvidia’s third-quarter forecast exceeds its second-quarter revenue total by nearly $12 billion at the midpoint. The broader U.S. market entered Thursday after nearly flat performance on Wednesday and gains driven by technology on Tuesday. These figures represent the most recent confirmed corporate and economic data available following the two Wall Street sessions.