Major United States benchmark averages finished higher on Thursday (Friday AEST) with the S&P 500 closing above the 6,500 mark for the first time, cementing another record for Wall Street as Nvidia’s latest results reinforced investor conviction in the artificial intelligence boom.
During Thursday's session, the Dow Jones Industrial Average rose 71.7 points, or 0.2% to finish at a record 45,636.9, the S&P 500 ended 20.4 points or 0.3% higher at 6,501.9, and the Nasdaq Composite gained 115.0 points or 0.5% to close at 21,705.2.
Nvidia delivered second-quarter earnings that exceeded Wall Street expectations, with revenue jumping 56% year on year.
However, its data centre revenue came in slightly below consensus, and guidance for the current quarter was modest at $54 billion, just above expectations of $53.1 billion.
Shares initially rose but closed down 0.8%, with traders noting that the outlook does not yet factor in potential H20 chip sales to China. A breakthrough with the Trump administration on those sales could materially lift revenue.
Despite the dip in Nvidia’s stock, sentiment toward the sector improved. JPMorgan, Citi, and Bernstein all raised their price targets for the chipmaker, citing continued strength in AI demand.
Elsewhere, Snowflake surged 20.3% after reporting second-quarter results that easily beat expectations, adding further fuel to the AI trade.
Thursday’s rally followed a positive session on Wednesday, when markets closed higher in anticipation of Nvidia’s report.
Investors have also largely brushed aside fresh political uncertainty after President Donald Trump told Federal Reserve Board Governor Lisa Cook that she was fired earlier this week, a move Cook is contesting in court. A federal judge has scheduled a hearing for Friday.
Economic data also provided support. The Commerce Department reported that second-quarter gross domestic product (GDP) grew at a 3.3% annualised pace, above both the initial 3.0% estimate and economists’ expectations for 3.1%.
The next test for markets comes on Friday with the release of the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge.
Economists forecast a 0.2% rise for July and a 2.6% increase from a year earlier.
On the bond markets, the 10-year Treasury yield slipped 0.8% to 4.205%, while the 2-year yield edged up 0.5% to 3.633%.
