Nvidia Powers S&P 500 Closer to Record/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks climbed Wednesday, with Nvidia driving gains across major indexes. The S&P 500 moved closer to its recent record high as AI optimism resurfaced. Investors also digested earnings reports and awaited Federal Reserve meeting minutes.
Nvidia Stock Rally Quick Looks
- S&P 500 up 0.6%, nearing record high
- Dow Jones gains 222 points
- Nasdaq rises 0.8%
- Nvidia jumps 2.2% on Meta data center partnership
- Investors await Federal Reserve meeting minutes
- Treasury yields edge higher
Deep Look: Nvidia Powers S&P 500 Closer to Record
Shares of Nvidia helped push U.S. markets higher Wednesday, reinforcing the chipmaker’s role as one of Wall Street’s most influential stocks amid ongoing enthusiasm — and uncertainty — around artificial intelligence.
By midmorning in New York, the S&P 500 was up 0.6%, putting the benchmark index within 1.4% of its all-time high reached late last month. The Dow Jones Industrial Average gained 222 points, or 0.5%, while the Nasdaq Composite climbed 0.8%.
Nvidia rose 2.2% after Meta Platforms announced a long-term partnership to build artificial intelligence-focused data centers using millions of Nvidia chips and related equipment. Nvidia CEO Jensen Huang highlighted the scale of Meta’s AI ambitions, underscoring the depth of demand for advanced semiconductors powering machine learning and data processing.
Because Nvidia remains one of the largest and most heavily weighted companies in the S&P 500, even modest percentage moves in its share price can have an outsized impact on broader market performance. Wednesday’s gains reflected renewed optimism about AI-driven growth — even as questions persist about the sustainability of massive spending in the sector.
While Nvidia advanced, Meta’s shares slipped 0.4%, reflecting ongoing investor debate about the enormous capital expenditures required to develop AI infrastructure. Some market participants are questioning whether companies can generate sufficient returns to justify the billions being poured into data centers, chips and software development.
The AI boom has also sparked concerns about disruption across multiple industries. Investors have recently punished companies perceived to be vulnerable to automation or AI-driven efficiencies, with analysts describing a “shoot first, ask questions later” mentality as markets rapidly reassess future earnings potential.
Beyond AI headlines, corporate earnings continued to shape trading.
Cadence Design Systems surged 7.2% after reporting quarterly profit and revenue that topped analysts’ expectations. CEO Anirudh Devgan credited the resilience of the company’s engineering software offerings, even as AI reshapes the technology landscape.
Similarly, Analog Devices gained 2.1% after exceeding Wall Street forecasts for profit and revenue. The chipmaker cited record orders in its data center business, another sign of sustained demand tied to AI infrastructure.
In the biotechnology sector, Moderna jumped 6.9% after announcing that the U.S. Food and Drug Administration agreed to review its flu vaccine candidate. The update followed an earlier regulatory setback and offered investors fresh optimism about the company’s pipeline beyond COVID-19 vaccines.
Not all earnings news was positive. Palo Alto Networks fell 8.7% despite posting stronger-than-expected quarterly profits. The cybersecurity firm issued profit forecasts for the current quarter and fiscal year that came in below analysts’ estimates, disappointing investors.
In the bond market, Treasury yields edged higher ahead of the release of minutes from the Federal Reserve’s most recent policy meeting. The yield on the 10-year U.S. Treasury rose to 4.08% from 4.05% the previous day.
The Federal Reserve has paused its recent cycle of interest rate cuts, but many traders anticipate that rate reductions could resume later this year. Investors are closely examining the meeting minutes for clues about when policymakers might ease borrowing costs again, with many expecting potential action during the summer as a new Fed chair prepares to assume leadership.
Lower interest rates typically support economic growth and equity valuations but can also reignite inflation pressures — a balance policymakers continue to navigate.
Overseas markets also showed strength. London’s FTSE 100 climbed 1.3% after fresh U.K. inflation data bolstered expectations that the Bank of England may consider cutting rates soon.
In Asia, Japan’s Nikkei 225 gained 1% after Prime Minister Sanae Takaichi was reappointed following a decisive election victory for her Liberal Democratic Party. Investors anticipate policies aimed at supporting economic growth and financial markets.
Other global markets posted more modest gains, while several exchanges remained closed for Lunar New Year celebrations.
For now, Nvidia’s rally once again demonstrated how closely U.S. stock market performance is tied to the trajectory of artificial intelligence investment. As earnings season continues and central bank signals evolve, investors remain caught between optimism over technological innovation and caution about valuation risks and macroeconomic uncertainty.
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