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27.08.202617:01:34UTC+00Tech Earnings Lift Stock Indices

US equity indices advanced on Thursday, driven by strong results from Nvidia that lifted the broader tech sector. The S&P 500 and Nasdaq 100 each gained nearly 1%, while the Dow Jones Industrial Average added about 200 points.

Nvidia surged more than 9% after surging demand for AI compute led the world’s largest company to project a roughly 70% increase in revenue for the next fiscal year. The guidance challenged persistent skepticism that capital expenditure on AI infrastructure would soon slow. The upbeat outlook spilled over to other AI infrastructure plays, with Broadcom and Intel climbing about 4% and 3%, respectively.

AI enthusiasm also buoyed software infrastructure names. Salesforce and CrowdStrike each jumped around 20% following their earnings releases.

In contrast, broader sectors underperformed amid ongoing concerns about an unfavorable macroeconomic backdrop. Long-term Treasury yields hovered near recent highs, pressured by widening federal budget deficits, a surge in AI-related debt issuance, renewed tariff tensions with Canada and other major trading partners, and mounting risks of higher energy-driven inflation.

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