U.S. stocks opened higher on Thursday as strong Nvidia earnings revived confidence in the artificial intelligence trade. Investors also remained focused on an upcoming speech from Federal Reserve Chair Kevin Warsh at Jackson Hole.
At the opening bell, the S&P 500 gained 0.4% to 7,704.51, while the Nasdaq Composite jumped 0.9% to 26,371.02. The Dow Jones Industrial Average rose 0.3% to 53,613.66.
Nvidia Earnings Boost Wall Street
Nvidia shares surged more than 7% shortly after the market opened.
The chip giant reported quarterly revenue that more than doubled from the same period a year earlier, driven largely by strong demand for its data center products.
Nvidia also projected approximately 70% revenue growth for fiscal 2028, significantly above Wall Street expectations.
The strong results helped restore optimism toward the broader technology sector.
AI Stocks Recover as Investor Confidence Improves
Technology shares had faced pressure in recent weeks as investors questioned whether the enormous amount of capital being spent on artificial intelligence infrastructure would generate sufficient returns.
Nvidia’s latest earnings report helped ease some of those concerns.
The company’s strong revenue growth and bullish outlook suggested that demand for AI computing remains robust despite recent market doubts.
Wall Street Had Closed Lower Before Nvidia Results
The major U.S. stock indexes finished slightly lower on Wednesday as investors waited for Nvidia’s earnings and assessed new inflation data.
The S&P 500 ended just below unchanged, while the Nasdaq slipped 0.1% and the Dow fell 0.2%.
Caution remained elevated ahead of the earnings report, given Nvidia’s importance to the wider AI and semiconductor sectors.
Inflation Data Keeps Fed Policy in Focus
Investors were also digesting the latest Personal Consumption Expenditures Price Index.
Headline PCE inflation for July came in slightly above expectations, while the core reading matched economists’ forecasts.
Inflation remains above the Federal Reserve’s 2% target, keeping monetary policy firmly in focus.
Markets still largely expect the Fed to leave interest rates unchanged at its September meeting.
Markets Increase Bets on Future Fed Rate Hikes
Although expectations for September remained relatively stable, investors increased bets that the Federal Reserve could raise rates later in the year.
Analysts at Deutsche Bank pointed to a series of stronger-than-expected U.S. economic indicators.
Recent durable goods orders beat forecasts, while second-quarter consumer spending was revised higher.
The analysts argued that the strength of the economic data makes it difficult to conclude that current Federal Reserve policy is significantly restricting economic activity.
Jackson Hole Speech Could Influence Markets
Federal Reserve Chair Kevin Warsh is scheduled to speak at the Jackson Hole symposium on Friday.
Investors will closely monitor his comments for guidance on inflation, economic growth and the future direction of interest rates.
Analysts at Vital Knowledge said Warsh is unlikely to make major changes to his expected message.
He has previously emphasized that the Federal Reserve remains committed to bringing inflation under control.
Salesforce Shares Jump on Strong Earnings
Nvidia was not the only major technology company supporting market sentiment.
Salesforce shares surged more than 13% after the enterprise software company reported better-than-expected second-quarter earnings and revenue.
Salesforce also raised its full-year revenue and profit forecasts.
CEO Marc Benioff highlighted the growing impact of artificial intelligence across the company’s products and services.
CrowdStrike Rallies While HP Shares Slide
Cybersecurity company CrowdStrike also climbed more than 13% after increasing its annual revenue forecast.
HP moved in the opposite direction.
Shares of the computer manufacturer dropped nearly 10% following weaker personal computer shipments.
The contrasting moves highlighted how company-specific earnings results continue to play an important role in the broader technology sector.
Nvidia Revives the AI Trade
Thursday’s market action showed that enthusiasm around artificial intelligence remains a major force on Wall Street.
Nvidia’s strong earnings, accelerating data center demand and bullish long-term revenue outlook helped restore confidence after recent concerns about the sustainability of AI spending.
For now, the S&P 500 and Nasdaq remain supported by renewed technology optimism, although investors will continue watching inflation data and Federal Reserve guidance for the next major market catalyst.
