NEW YORK / RankWire.AI / – Following Nvidia’s quarterly results announcement on Wednesday, Wall Street’s recent technology sector rally gained added significance. On Tuesday, major U.S. indices had surged as tech and semiconductor stocks rebounded from the prior session’s decline. The S&P 500 increased by 0.31% to 7,676.62. The Nasdaq Composite moved up 0.64% to 26,145.47, while the Dow Jones Industrial Average rose 0.29% to 53,572.91. These gains revitalized momentum in technology stocks ahead of one of the market’s most closely watched earnings releases.
On Tuesday, Nvidia shares climbed 2.2%, with AMD jumping 4.9% and Meta Platforms rising nearly 2%. The broad-based Philadelphia semiconductor index added 1.4%, indicating widespread gains among chipmakers. During the session, Treasury yields decreased, and oil prices also declined. These shifts reflected renewed demand for large technology stocks after Monday’s pullback. The recovery enabled all three major U.S. indexes to finish higher as investors awaited corporate earnings reports and new economic data.
Wall Street’s close on Wednesday was almost unchanged before Nvidia published its results after the market closed. The Dow decreased by 0.21%, the S&P 500 dipped 0.02%, and the Nasdaq Composite fell 0.08%. Data released in the U.S. showed the personal consumption expenditures price index increased by 3.7% in July compared to the previous year. Core PCE inflation, which excludes food and energy, rose by 3.3% over the same period. Personal spending in July grew by 0.2%, while personal income increased by 0.4%.
Nvidia results come as the technology rally continues
For the period ending July 26, Nvidia reported fiscal second-quarter revenue of $96.22 billion. This represented an 18% increase from the previous quarter and a 106% rise year-over-year. Data Center revenue hit $89.0 billion, up 117% compared to the same quarter last year. The company posted GAAP net income of $59.69 billion and diluted earnings per share of $2.46. Its GAAP gross margin was 75.0%, compared to 72.4% in the same quarter of the prior year.
Looking ahead, Nvidia provided a fiscal third-quarter revenue forecast of $108.0 billion, plus or minus 2%. The outlook assumes no Data Center compute revenue from China. The company expects GAAP and non-GAAP gross margins of 74.0%, with a margin deviation of plus or minus 50 basis points. During the second quarter, Nvidia returned approximately $26.0 billion to shareholders through share repurchases and cash dividends. As of quarter-end, about $99.0 billion remained under its authorized share repurchase program.
Markets respond to earnings and inflation reports in the U.S.
Following the earnings report and conference call, Nvidia shares increased by 4.7% in after-hours trading. Meanwhile, U.S. stock futures rose during Asian trading on Thursday. Several Asian markets saw gains in technology stocks following Nvidia’s revenue figures and outlook. This market activity followed two contrasting sessions on Wall Street, with Tuesday’s technology rally giving way to modest declines on Wednesday. Key factors influencing global equities included semiconductor earnings and inflation data from the U.S.
The latest economic figures also provided context for Tuesday’s rally, which centered on Nvidia’s report. Both revenue and Data Center sales more than doubled compared to the same quarter last year. Nvidia’s forecast for the third quarter exceeded its second-quarter revenue by nearly $12 billion at the midpoint. As Thursday began, the broader U.S. markets remained near flat after Wednesday’s slight decline and Tuesday’s gains driven by technology stocks. These numbers serve as the most recent confirmed corporate and economic data following the two Wall Street sessions.