Nvidia-led earnings lift US tech indices, S&P 500 and Nasdaq 100 up
US equity indices gained traction on Thursday as Nvidia surged after strong results and a 70% revenue forecast next fiscal year. S&P 500 and Nasdaq 100 rose nearly 1%; Dow added 200 points, while Broadcom and Intel climbed.
US equity indices gained traction on Thursday as strong results by Nvidia supported the tech sector.
The S&P 500 and Nasdaq 100 rose nearly 1% while the Dow added 200 points.
Nvidia surged over 9% after soaring demand for AI compute drove the world's largest company to forecast a 70% surge in revenue next fiscal year, challenging the persistent skepticism that capital expenditure on AI infrastructure was bound to slow.
The outlook supported other companies with exposure to AI infrastructure, with Broadcom and Intel gaining 4% and 3%, respectively.
AI also supported software infrastructure, with Salesforce and Crowdstrike and Salesforce soaring around 20% each after their earnings.
On the other hand, broader sectors were lower amid persistent concerns of an unfavorable macroeconomic backdrop.
Long-term bond yields remained near their peaks amid widening federal deficits, soaring AI debt issuance, renewed tariffs with Canada and major trading partners, and risks of high energy inflation.