Nvidia’s stock price surged after delivering another blowout quarter, setting off a rally in other tech stocks that carried Wall Street to another record high.
Both the S&P 500 and Dow Jones Industrial Average reached new all-time highs on Thursday, buoyed by record-breaking results from chipmaker Nvidia that set off a rally in other technology companies.
The S&P 500 rose 2.1% Thursday to a fresh record, while the tech-heavy Nasdaq added 3%. The Dow, which has a smaller weighting in tech stocks, rose 1.1%, marking its first close above 39,000.
Nvidia, a central player in the boom surrounding artificial intelligence technology, reported scorching demand for its semiconductors when it released its quarterly earnings on Wednesday. Nvidia’s stock price jumped more than 16% on Thursday, adding $273 billion to its market valuation in a single day, beating the previous record one-day jump when Meta gained $205 billion on Feb. 2 of this year.
« Today’s record-breaking stock market is due to both the future promise of AI and the record-breaking results that the poster child for AI – Nvidia – reported in the here and now, » said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, in an email.
He added, « As we’ve been saying for the past 12 months, as long as the economy keeps expanding, it’s really hard to interrupt a bull market. »
The S&P 500 has gained more than 7% since year start, while the Nasdaq has jumped 8.
