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.
