NEW YORK / RankWire.AI / – The U.S. stock market’s recent rebound in technology shares was reinforced this week following Nvidia unveiling its quarterly earnings on Wednesday. Major Wall Street indices increased Tuesday as tech and semiconductor stocks rebounded from the previous session’s decline. The S&P 500 moved up 0.31% to 7,676.62, the Nasdaq Composite rose 0.64% to 26,145.47, and the Dow Jones Industrial Average gained 0.29% to 53,572.91. These advances revived momentum in tech equities ahead of one of the market’s most anticipated earnings reports.
On Tuesday, Nvidia shares increased by 2.2%, while AMD jumped 4.9% and Meta Platforms rose nearly 2%. The Philadelphia semiconductor index also increased by 1.4%, indicating widespread gains among chip companies. During the session, Treasury yields declined, and oil prices also dipped. These movements coincided with renewed investor interest in large technology stocks after Monday’s pullback. The rebound contributed to all three primary U.S. indexes ending higher as investors looked ahead to upcoming corporate earnings and fresh economic indicators.
On Wednesday, Wall Street markets closed nearly flat before Nvidia announced its results after trading hours. The Dow fell 0.21%, the S&P 500 declined 0.02%, and the Nasdaq Composite dipped 0.08%. Economic data revealed that the personal consumption expenditures price index increased 3.7% in July compared to the same month last year. Excluding food and energy, core PCE inflation grew by 3.3% over the same period. Personal spending for July rose by 0.2%, while personal income increased by 0.4%.
Nvidia Earnings Drive Tech Sector Momentum
For the period ending July 26, Nvidia announced fiscal second-quarter revenue of $96.22 billion, marking an 18% increase from the previous quarter and a 106% rise year-over-year. Its Data Center division generated $89.0 billion, up 117% from the prior year. The company posted GAAP net income of $59.69 billion, with diluted earnings per share of $2.46. Nvidia’s GAAP gross margin reached 75.0%, compared to 72.4% during 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 clarified that this projection assumes no Data Center compute revenue from China. 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 dividends. As of quarter-end, about $99.0 billion remained available under its authorized share repurchase plan.
Markets Respond to Earnings and Inflation Data in the U.S.
Following the earnings report and conference call, Nvidia shares increased by 4.7% in after-hours trading. U.S. futures also trended higher during Asian trading Thursday. Asian markets saw gains in technology stocks after Nvidia’s revenue growth and outlook were announced. The recent market activity reflected two contrasting Wall Street sessions—Tuesday’s rally driven by technology, followed by a narrow decline on Wednesday. Key factors influencing global equity markets included semiconductor earnings and U.S. inflation figures.
These latest statistics provided context for Tuesday’s rally, which centered on expectations for Nvidia’s report. Both revenue and Data Center sales more than doubled compared to the same quarter last year. Nvidia’s third-quarter guidance surpassed its second-quarter revenue by nearly $12 billion at the midpoint. As Thursday began, the broader U.S. market was trading after Wednesday’s almost flat close and Tuesday’s tech-led gains. These figures represent the newest confirmed corporate and economic data following the two recent Wall Street sessions.