Technology stocks led Wall Street higher on Thursday, propelled by strong earnings and optimistic forecasts from chipmaker Nvidia and software giant Salesforce. The gains underscored continued investor confidence in the artificial intelligence (AI) sector despite recent market volatility.
The technology-heavy Nasdaq Composite rose 1.6 percent to 26,541.35, outpacing other major indexes. The S&P 500 increased 0.7 percent, closing at 7,730.99, while the Dow Jones Industrial Average edged up 0.2 percent to 53,569.44. The semiconductor sector gained 2.3 percent, reflecting broad strength in chip-related stocks.
Nvidia shares surged 8.7 percent after the company reported stronger-than-expected second-quarter results and issued a bullish revenue forecast for the upcoming period. Nvidia’s outlook exceeded analyst expectations and affirmed robust demand for chips used in AI applications. However, the company also noted potential supply constraints due to shortages in memory components, which could slow industry growth.
Nvidia CEO Jensen Huang described AI as having reached a critical point where it is delivering productive and profitable outcomes, helping to alleviate concerns that the AI chip market may overheat and face a subsequent pullback.
Salesforce also contributed significantly to the market rally, with shares climbing 22.6 percent following the company’s announcement of better-than-expected quarterly revenue and profit. Salesforce’s CEO, Marc Benioff, highlighted the strong demand for AI and data-driven products as key drivers of the company’s performance. Salesforce also expanded its partnership with Anthropic to integrate the Claude AI chatbot into its platform, strengthening its position in the evolving software landscape. The announcement helped ease investor worries that AI advancements could disrupt traditional software providers, leading to a rebound in several beaten-down software stocks, including CrowdStrike, BlackBerry, ServiceNow, and Palo Alto Networks.
CrowdStrike shares rose 20.5 percent after beating earnings estimates and raising its annual revenue guidance, signaling positive momentum in the cybersecurity segment linked to AI growth.
Despite the gains in technology shares, overall market breadth was mixed. Some companies outside the sector faced headwinds amid economic concerns. Retailers such as Best Buy fell 4.4 percent despite beating profit and revenue estimates, reflecting ongoing worries about consumer spending amid persistent inflation. Among dollar-store chains, Dollar General rose 2.5 percent after a strong profit report, while competitor Dollar Tree declined 3.9 percent due to lower-than-expected revenue guidance.
In Canada, the S&P/TSX Composite Index saw little change, ending slightly higher by 0.06 percent at 36,834.25. Gains in technology and resource sectors balanced losses in financial shares amid an evaluation of solid bank earnings.
In the bond market, Treasury yields edged up following reports of a stable U.S. labor market, with fewer workers filing unemployment claims. The yield on the 10-year Treasury note increased modestly to 4.67 percent. Market participants are awaiting a speech from Federal Reserve Chairman Kevin Warsh, which may provide further insight into monetary policy amid ongoing inflation concerns.