According to a media report, US stocks surged on Thursday following a robust earnings report from tech giant Nvidia, which heightened investor confidence on Wall Street.
The Dow Jones Industrial Average, a prominent blue-chip index, climbed 278 points, marking a 0.7 percent increase. Meanwhile, the broader S&P 500 index recorded a gain of 1.6 percent, and the tech-focused Nasdaq Composite surged by 2.4 percent, as reported by CNN.
During morning trading, the S&P 500 reached a new record high, propelled by the strong performance of major tech stocks. Similarly, the Nasdaq was on track to achieve a fresh all-time high, indicating the overall positive sentiment in the market.
Nvidia, a leading player in the tech industry, spearheaded the market gains with its exceptional earnings growth, driven by the flourishing artificial intelligence sector.
The chipmaker reported an impressive revenue of nearly $12.3 billion for the three-month period ending January 28, marking a remarkable increase from $1.4 billion in the corresponding quarter of the previous year—a staggering 769 percent year-over-year growth. This surpassed the expectations of Wall Street analysts.
Nvidia's full-year profits also witnessed a substantial surge of over 580 percent compared to the previous year, as highlighted by CNN.
In a statement on Wednesday evening, Nvidia CEO Jensen Huang remarked that generative AI has reached a critical inflection point, with a surge in demand observed globally across various companies, industries, and nations.
Following the earnings announcement, Nvidia's stock soared by 15.3 percent during morning trading, reversing the downward trend observed earlier in the week when the company experienced its worst trading day since October of the previous year.
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