Major U.S. stock indices closed sharply higher on Thursday, with the S&P 500 gaining +0.72%, the Dow Jones Industrial Average rising +0.20%, and the Nasdaq 100 surging +1.43%.
Nvidia (NASDAQ: NVDA) delivered a blowout earnings report that supercharged confidence in the artificial intelligence trade, sending its shares soaring more than +8% on the session.
The chipmaker reported Q2 revenue of $96.22 billion, well above the Wall Street consensus of $92.38 billion, and projected fiscal 2028 revenue to grow approximately 70%.
The Nvidia-led surge lifted the broader semiconductor and AI-infrastructure sector, with the iShares Semiconductor ETF (SOXX) closing up more than +1%, while Intel (NASDAQ: INTC) and Broadcom (NASDAQ: AVGO) each gained more than +3%.
Cybersecurity stocks also surged following stellar earnings from two major players, with CrowdStrike Holdings (NASDAQ: CRWD) jumping more than +20% to lead gainers in the Nasdaq 100 after raising its 2027 adjusted operating income forecast to $1.50 billion-$1.51 billion from a prior forecast of $1.45 billion-$1.48 billion.
Okta (NASDAQ: OKTA) soared more than +28% after boosting its 2027 revenue forecast to $3.22 billion to $3.23 billion, up from a previous forecast of $3.19 billion to $3.21 billion, topping the consensus of $3.20 billion.
Salesforce (NYSE: CRM) led gainers across both the S&P 500 and the Dow Jones Industrials, surging +22% after forecasting Q3 revenue of $11.42 billion to $11.50 billion, with the midpoint matching or exceeding the consensus of $11.42 billion.
A $31 billion joint venture between Sandisk and Kioxia Holdings aimed at ramping up flash memory production added further positive momentum to the technology sector on the day.
Weekly initial unemployment claims unexpectedly fell by 4,000 to 203,000, a stronger outcome than the consensus forecast of an increase to 208,000, signaling continued resilience in the U.S. labor market.
Federal Reserve officials offered hawkish commentary that weighed on bonds, with Kansas City Fed President Jeff Schmid warning that the interest rate setting “might be accommodative on the short end” and that “we’ve got work to do.”
Cleveland Fed President Beth Hammack reinforced that message, stating that “I think it’s appropriate for the Fed to put some restraint there to help bring inflation back down to target,” with markets pricing in a 33% probability of a 25 basis point rate hike at the September 15-16 FOMC meeting.
Oil prices added to the risk-on mood, with October WTI crude rallying more than +1% after a Wall Street Journal report indicated the U.S. has no interest in returning to the terms of its June deal with Iran, raising concerns over Middle East supply.
S&P 500 earnings growth is tracking at nearly 32% for Q2, well above the initial projection of +23%, with AI infrastructure stocks expected to contribute nearly 60% of the index’s earnings-per-share growth, according to Bloomberg Intelligence.
Some 86% of the 478 S&P 500 companies that have reported Q2 results beat estimates, according to Bloomberg data, underscoring the breadth of the current earnings season strength.
On the downside, Hormel Foods (NYSE: HRL) dropped more than -10% to lead S&P 500 losers after reporting Q3 net sales of $2.96 billion, missing the consensus of $3.03 billion, and cutting its full-year net sales forecast to $12.1 billion to $12.2 billion from a prior range of $12.2 billion to $12.5 billion.
Wendy’s (NASDAQ: WEN) fell more than -13% after Reuters reported that Trian Fund Management has no plans at this time to make a bid to take the company private.
