NEW YORK: The S&P 500 and the Nasdaq hit two-week highs on Wednesday, boosted by heavyweight technology stocks, ahead of Nvidia’s quarterly results that could reinforce or challenge a recent rebound in the sector.
Nvidia gained 2.2 percent ahead of earnings, due after markets close on Wednesday. AI investors will be looking out for evidence that the chipmaker’s profits are growing on the back of Big Tech’s USD630 billion capital spending budget for 2026.
Nvidia options imply a move of about 5.6 percent in either direction a day after the company reports results, which is the lowest expected post-results swing ahead of any quarterly report in at least three years. Chip stocks were broadly mixed, and the Philadelphia SE Semiconductor Index climbed 1.4 percent to a record high.
At 11:44 a.m. ET, the Dow Jones Industrial Average rose 212.40 points, or 0.43 percent, to 49,385.92, the S&P 500 gained 46.01 points, or 0.67 percent, to 6,936.08 and the Nasdaq Composite gained 244.31 points, or 1.07 percent, to 23,107.99.
The S&P 500 information technology index rose 1.7 percent, while the communication services index added 0.7 percent. Financials also added 1.2 percent.
Technology stocks extended their gains from Tuesday, when the Nasdaq rose more than 1 percent as sentiment towards AI stocks improved.
US President Donald Trump boasted of stock market advances in his State of the Union speech on Tuesday and said that “almost all” countries and corporations want to stick to tariff and investment agreements previously made with the United States.
Trump’s temporary global tariff of 10 percent came into effect on Tuesday after the Supreme Court last week voided most of the tariffs he had imposed last year, finding that the emergency law he relied on did not allow the imposition of tariffs.
Concerns of industry-wide disruptions with the rise of AI hit several sectors earlier this year, ranging from software, commercial real estate to trucking and logistics.
The S&P 500 software and services index climbed 2.3 percent on Wednesday, though still down more than 21 percent for the year. Earnings from software firms Salesforce and Snowflake are due after close on Wednesday.
Among others, Axon Enterprise climbed 21.4 percent after the taser-maker beat fourth-quarter profit estimates, while Workday dropped 0.7 percent after the enterprise software maker forecast fiscal 2027 subscription revenue below estimates.
Advancing issues outnumbered decliners by a 1.23-to-1 ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq.
The S&P 500 posted 43 new 52-week highs and 9 new lows, while the Nasdaq Composite recorded 102 new highs and 77 new lows.