Tech Stocks Lead Wall Street Higher After Nvidia, Salesforce Report Strong Earnings
Wall Street ended Thursday on an upbeat note as tech stocks led the charge. The S&P 500 added 0.2% and edged closer to its all-time high set earlier this month, while the Nasdaq composite rose by 0.6%. Nvidia was a major driver of the market's increase, with shares surging 6% after the chipmaker reported better-than-expected profits and revenue for the latest quarter.
Nvidia CEO Jensen Huang stated that artificial intelligence (AI) has reached its inflection point, emphasizing its potential to deliver useful work and profitability. The company's strong performance helped alleviate concerns about AI stocks, which have been under pressure lately due to skepticism over their high valuations.
Another tech giant, Salesforce, also posted impressive results, with a 14% increase in share price following the release of its quarterly report. The company attributed its success to AI and data products, highlighting the growing demand for these services. Salesforce raised its revenue forecast for the full year, which could help alleviate concerns about competitors using AI to steal away customers.
However, not all major U.S. companies fared well. HP declined 8.2% despite exceeding analysts' profit expectations in the latest quarter, while Best Buy and other retailers sank due to worries about high inflation and discouragement among U.S. shoppers.