NEW YORK / RankWire.AI / – This week’s tech sector rebound on Wall Street gained added context following Nvidia releasing its quarterly earnings on Wednesday. Major U.S. indices had moved upward Tuesday as technology and semiconductor stocks recovered from the previous day’s decline, with the S&P 500 increasing by 0.31% to 7,676.62, the Nasdaq Composite climbing 0.64% to 26,145.47, and the Dow Jones Industrial Average rising 0.29% to 53,572.91. These gains revived momentum for technology stocks ahead of one of the market’s most closely watched earnings reports.
Shares of Nvidia increased by 2.2% on Tuesday, while AMD surged 4.9% and Meta Platforms gained nearly 2%. The Philadelphia semiconductor index also advanced by 1.4%, indicating widespread gains across chipmakers. During the session, Treasury yields declined and oil prices fell as well. These shifts accompanied renewed interest in large technology stocks after Monday’s pullback. The upward movement helped all three major U.S. indexes close higher as investors awaited upcoming corporate earnings reports and economic data.
Wall Street wrapped up Wednesday with nearly flat readings before Nvidia announced its earnings after trading hours. The Dow dropped 0.21%, the S&P 500 dipped 0.02%, and the Nasdaq Composite declined 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. Excluding food and energy, core PCE inflation rose 3.3% over the same period. Personal spending rose by 0.2% in July, while personal income increased by 0.4%.
Nvidia earnings reinforce tech sector recovery
Nvidia reported a fiscal second-quarter revenue of $96.22 billion for the period ending July 26, representing an 18% increase from the previous quarter and a 106% rise year-over-year. Revenue from the Data Center segment 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 a year earlier.
Looking ahead, Nvidia projected fiscal third-quarter revenue of $108.0 billion, plus or minus 2%, assuming no Data Center compute revenue from China. The company expects GAAP and non-GAAP gross margins of 74.0%, plus or minus 50 basis points. During the second quarter, Nvidia returned approximately $26.0 billion to shareholders via share buybacks and dividends, ending the quarter with roughly $99.0 billion remaining under its authorized share repurchase plan.
Markets digest earnings and inflation reports
Following the earnings release and conference call, Nvidia shares increased by 4.7% in after-hours trading. U.S. stock futures also edged higher during Asian markets Thursday. Technology shares saw gains across several Asian markets after Nvidia’s revenue growth and outlook were announced. The market activity reflected two contrasting Wall Street sessions, with Tuesday’s tech-led rally giving way to narrow declines on Wednesday. Key influences on global equity trading remained earnings reports from the semiconductor sector and U.S. inflation data.
The latest economic figures also provided context for Tuesday’s rally, which centered around Nvidia’s report. Both revenue and Data Center sales more than doubled from the same quarter last year, with Nvidia’s third-quarter forecast exceeding its second-quarter revenue by nearly $12 billion at the midpoint. As Thursday began, the broader U.S. market was coming off Wednesday’s near-stability and Tuesday’s gains driven by technology. These data points represent the newest confirmed corporate and economic indicators after the two Wall Street sessions.