Tech Rally Lifts Nasdaq and S&P 500 Pre-Nvidia Earnings

The S&P 500 and Nasdaq reached two-week highs driven by technology stocks as investors awaited Nvidia's earnings. Nvidia's performance may influence AI-driven tech investments. The market reacted positively but it faced tensions tied to tariff changes and AI industry concerns. Stock performance varied with both gains and losses across sectors.

U.S. stock indices, the S&P 500 and the Nasdaq, surged to two-week highs on Wednesday, buoyed by technology stocks ahead of Nvidia's anticipated quarterly earnings report. Nvidia's shares rose by 2.2% as investors eagerly awaited insights into whether the chipmaker's profits are set to increase amid Big Tech's significant capital expenditure projected for 2026.

Market analysts observed that Nvidia options suggested a 5.6% movement post-earnings report, the smallest swing predicted in three years. While the Philadelphia SE Semiconductor Index hit new highs with a 1.4% rise, Bob Savage from BNY noted that the ongoing AI focus helped stabilize markets globally despite the absence of breaking news.

The technology sector's recent gains were echoed in broader market advances, with the Dow Jones climbing 212.40 points and the Nasdaq up 244.31 points. However, market uncertainties linger due to AI-spurred disruptions affecting various industries. The software and services index, despite rising 2.3%, remains over 21% down year-to-date.

(With inputs from agencies.)