U.S. Stocks Surge on Nvidia Earnings, Jobs Data

U.S. stocks surged Thursday, marking the market's strongest day since May, as a robust earnings report from Nvidia eased concerns over an artificial intelligence bubble and a mixed jobs report bolstered expectations for potential Federal Reserve interest rate cuts.

The S&P 500 climbed 1.8 percent, moving within 2 percent of its record high set last month. The Dow Jones Industrial Average rose 650 points, or 1.4 percent, by midmorning in New York, while the Nasdaq composite gained 2.4 percent. The rally followed weeks of volatility, driven by fears that AI-related stocks had risen too quickly and that the Fed might pause its rate reductions.

Nvidia, the world's most valuable company, led the advance after reporting summer profits that exceeded Wall Street forecasts and issuing revenue projections that surpassed analyst estimates. The chipmaker's shares jumped 3.9 percent, recovering from a monthly decline that had topped 10 percent. As a key supplier of chips for AI applications, Nvidia's performance reassured investors about the sector's sustainability. "Given the forecasts that Nvidia gave late Wednesday, it is very hard to see how this stock does not keep moving higher from...