On Wednesday, the tech-focused Nasdaq propelled Wall Street’s major indexes upward, fueled by a rebound in chip stocks in anticipation of Nvidia’s results, crucial for assessing future AI demand.
By 11:31 a.m. ET, the Dow Jones Industrial Average rose by 122.51 points, or 0.28%, reaching 43,743.67. The S&P 500 gained 42.56 points, or 0.71%, to hit 5,997.81, while the Nasdaq Composite climbed 211.83 points, or 1.11%, to 19,238.21.
Eight of the 11 S&P 500 sectors saw gains, with technology stocks increasing by 1.8%.
Leading the AI chip sector, Nvidia surged 4.4%, along with Broadcom and Advanced Micro Devices, which collectively pushed the broader semiconductor index 2.6% higher.
Nvidia’s quarterly earnings and forecasts, due post-market, are anticipated to significantly influence sentiment around artificial intelligence stocks that have been pivotal for Wall Street.
The introduction of budget-friendly AI models by China’s DeepSeek unsettled the market earlier this year, raising doubts about Big Tech’s substantial commitments to the technology.
“(Nvidia) has been the benchmark for this bull market… but the prevailing notion that only the ‘Magnificent Seven’ can thrive in generative AI is changing,” noted Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.
“The DeepSeek situation serves as a reminder that technology revolutions don’t operate that way.”
Large-cap stocks showed a mixed performance, with Meta Platforms up 3% and Apple down 2%. Tesla gained 1.2% following a decline in its market value below $1 trillion the previous day.
Super Micro jumped 19.6% after submitting overdue annual and quarterly reports.
In recent days, various data releases, including disappointing consumer sentiment numbers from Tuesday, indicated potential stagnation in the world’s largest economy, despite persistent high inflation, keeping investors wary.
The S&P 500 and Nasdaq experienced their largest four-day drops since September on Tuesday, affected by tech stock weakness and an analyst’s report suggesting excess capacity in AI infrastructure.
Furthermore, Wall Street’s indexes are likely to finish the month lower, with the Nasdaq on course for its worst decline in ten months.
Nonetheless, a Reuters survey revealed that strategists still forecast the S&P 500 to be approximately 9% higher than current levels by the end of 2025, despite ongoing market volatility.
On the fiscal front, President Donald Trump’s $4.5 trillion tax-cut and border security plan will proceed to the U.S. Senate after passing through the Republican-controlled House.
According to LSEG data, traders anticipate the Fed will initiate its first interest rate cut in July.
In global trade developments, Trump has initiated a probe into possible new tariffs on copper imports, causing prices of the metal to rise.
Freeport-McMoran, a Phoenix-based copper miner, saw a 5.2% increase in shares.
General Motors rose 5.4% after announcing a 25% increase in its quarterly dividend and unveiling a new $6 billion stock buyback initiative.
Intuit shares surged 13.3% following the company’s outlook of third-quarter revenue surpassing analysts’ expectations.
Advancing stocks outnumbered decliners 2.01-to-1 on the NYSE and 2.06-to-1 on the Nasdaq.
The S&P 500 reached 17 new 52-week highs against one low, while the Nasdaq Composite noted 30 new highs and 110 new lows.
