NEW YORK / RankWire.AI / – The recent rebound in technology stocks on Wall Street gained further momentum after Nvidia announced its quarterly earnings on Wednesday. Earlier in the week, major U.S. indices had climbed as technology and semiconductor shares recovered from the decline seen in the previous session. The S&P 500 increased by 0.31% to reach 7,676.62. The Nasdaq Composite moved up 0.64% to 26,145.47, while the Dow Jones Industrial Average advanced 0.29% to 53,572.91. These gains helped restore upward momentum to technology equities ahead of one of the market’s most anticipated earnings reports.
On Tuesday, Nvidia shares gained 2.2%, while AMD saw a 4.9% jump, and Meta Platforms increased by nearly 2%. The Philadelphia semiconductor index also rose by 1.4%, reflecting widespread gains across chipmakers. During the trading session, Treasury yields declined, and oil prices also moved lower. These shifts followed Monday’s pullback, which was accompanied by renewed investor interest in large technology stocks. The market rebound allowed all three major U.S. indexes to close higher as investors looked ahead to upcoming corporate earnings and new economic data.
Wall Street’s trading was nearly flat on Wednesday before Nvidia released its earnings after the market closed. The Dow dropped 0.21%, the S&P 500 declined slightly by 0.02%, and the Nasdaq Composite fell 0.08%. U.S. data showed that the personal consumption expenditures price index increased by 3.7% in July compared to the previous year. Core PCE inflation, which excludes food and energy, rose 3.3% over the same period. Personal spending grew by 0.2% in July, while personal income increased by 0.4%.
Nvidia’s earnings report underscores the recent technology rally
Nvidia reported a fiscal second-quarter revenue of $96.22 billion for the period ending July 26. This marked an 18% increase from the previous quarter and a 106% rise compared to the same quarter last year. Revenue from Data Center sales 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 stood at 75.0%, compared to 72.4% in the same quarter last year.
For the upcoming fiscal third quarter, Nvidia projected revenue of around $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 to be approximately 74.0%, with a variability 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. At the end of the quarter, about $99.0 billion remained under its authorized share repurchase program.
Markets digest earnings results alongside inflation data
Following the earnings release and conference call, Nvidia shares increased by 4.7% in after-hours trading. U.S. stock futures also moved higher during Asian trading Thursday. Several Asian markets saw gains in technology shares after Nvidia shared its revenue growth figures and outlook. This market activity reflected the contrasting recent sessions on Wall Street, with Tuesday’s technology-driven rally giving way to narrow declines on Wednesday. The main influences on global equity trading remained semiconductor earnings and U.S. inflation figures.
The latest economic data provided context for Tuesday’s rally, which was largely driven by expectations for Nvidia’s report. Both revenue and Data Center sales more than doubled compared to the same quarter a year earlier. The company’s forecast for the third quarter surpassed its second-quarter revenue by nearly $12 billion at the midpoint. As Thursday’s trading began, the broader U.S. market was coming off a near-flat finish on Wednesday and a technology-led gain on Tuesday. These figures represent the newest confirmed corporate and economic updates following the two recent Wall Street sessions.