The S&P 500 (^GSPC 1.35%) rose 0.81% to 6,946.13 and the Nasdaq Composite (^IXIC 1.58%) climbed 1.26% to 23,152.08 on tech strength. The Dow Jones Industrial Average (^DJI 1.36%) added 0.63% to 49,482.15 as investor sentiment stedied.
Market movers
Nvidia (NVDA 1.59%) rallied ahead of its after-the-bell earnings today. It posted further gains in after-hours trading as the bellwether for artificial intelligence (AI) stocks shared bumper revenue forecasts. Other AI stocks, such as Taiwan Semiconductor Manufacturing (TSM 4.64%), Dell Technologies (DELL +1.55%), and Micron (MU 2.99%) extended the day’s gains after hours.
Elsewhere, Lowe’s (LOW 2.12%) slipped after results. NovoCure (NVCR 4.12%) soared 27.67% to finish at $14.99 on regulatory progress in advance of tomorrow’s earnings. Another biotech firm, MannKind (MNKD 1.06%) dropped 36.82% to close at $3.50 after its partner, United Therapeutics (UTHR 1.38%), unveiled a competing inhaler.
What this means for investors
All eyes were on Nvidia today, and it did not disappoint. In what was viewed as a crucial test for AI-chip demand, Nvidia topped analyst expectations on earnings per share, revenue, and its Q1 sales forecast. The numbers will offer reassurance to those worried that the current AI growth is unsustainable.
Salesforce (CRM +2.25%) was a different story. The stock fell over 5% after market close, dogged by AI replacement fears, in spite of an earnings beat.
Zooming out, markets calmed after a turbulent few days. Market reaction to Tuesday's State of the Union address was relatively muted. Investors will be watching upcoming earnings reports, particularly from tech leaders, for insight into how the AI market is developing.
