Nvidia quarter lifts markets as AI rally fuels record highs

U.S. stocks pushed higher this week and the S&P 500 notched fresh record closes as investors cheered expectations of Fed rate cuts and the continued AI-driven rally, even as market attention centered on Nvidia’s blockbuster quarterly report released after markets closed on Wednesday. Nvidia reported a strong second quarter but prompted mixed reactions after providing guidance that some investors read as a sign of slowing AI chip demand, leaving its shares to dip initially in afterhours trading before stabilizing in early premarket activity.

Nvidia posted revenue of roughly $46.7 billion for the quarter, up about 56 percent year over year, and adjusted earnings of $1.05 per share, narrowly beating Street estimates, executives said on the earnings call. Management also announced a $60 billion share buyback program. The company remains a dominant AI supplier and now represents roughly 7.5 to 8 percent of the S&P 500 by market capitalization, making its results materially important for the broader index.

Major benchmarks closed higher on Thursday, with the S&P 500 finishing above 6,500 for the first time and the Dow and Nasdaq also near record territory, market data showed. Traders...