S&P 500 Hits Record High as Nvidia Earnings Fuel AI Rally; Inflation Data Awaited
S&P 500 Hits Record High as Nvidia Earnings Fuel AI Rally; Inflation Data Awaited
The S&P 500 surged to an unprecedented all-time high on Thursday, driven by robust market reaction to Nvidia’s latest earnings report. The broad market index, after briefly touching new intraday peaks, closed with minor changes, while the Nasdaq Composite rose 0.2% and the Dow Jones Industrial Average hovered just below the flatline.
Nvidia, a significant component of the S&P 500, announced second-quarter results that surpassed Wall Street expectations, showcasing a booming 56% increase in revenue. Despite a slight miss on data center revenue and a conservative outlook for overall revenue this quarter—projected at $54 billion against expectations of $53.1 billion, partly due to the exclusion of potential H20 chip sales to China—investors largely viewed the figures as a strong affirmation of the ongoing AI boom. The stock, which initially saw premarket declines, recovered by market open, though it ended the session slightly over 1% lower. Analysts from firms like JPMorgan, Citi, and Bernstein have since reiterated their bullish stance, raising price targets for the chipmaker.
The positive sentiment extended to other chipmakers, with Broadcom climbing 2% and Micron Technology advancing 3%, signaling continued investor confidence in the AI sector. Cloud data giant Snowflake also saw an impressive 18% jump in its shares following better-than-expected second-quarter results.
This market momentum follows a strong Wednesday session, with the S&P 500 already setting a record in anticipation of Nvidia’s performance. Both the S&P 500 and Nasdaq are up over 2% for August, while the Dow has gained more than 3% during the same period.
Amidst market enthusiasm, investors are also navigating political headwinds, including threats to the Federal Reserve’s independence from the Trump administration. President Donald Trump’s attempt to fire Fed Board Governor Lisa Cook earlier this week has led to a lawsuit filed by Cook on Thursday.
Looking ahead, markets are keenly awaiting the release of July’s personal consumption expenditures (PCE) price index report today, Friday. Economists polled by Dow Jones anticipate a 0.2% monthly rise and a 2.6% annual increase for the inflation gauge.
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