Stock market indices S&P 500 and Dow Jones Industrial Average reach new record closings, bolstered by strong performance of tech giant Nvidia in the artificial intelligence sector.
Artificial Intelligence Fueling Market Surge
In a week marked by strong demand for AI-powered technology, the S&P 500 and Dow Jones Industrial Average reached record high closes. Nvidia's quarterly revenue surge of 56% served as a clear indication of the robust AI technology market.
HP saw a 4.6% rise in its shares after beating quarterly revenue estimates, thanks to growing demand for AI-powered personal computers. Other AI heavyweights, including Alphabet, Amazon, and Broadcom, also experienced gains. Data analytics company Snowflake surged 20% following its forecast for fiscal 2026 product revenue.
The S&P 500 climbed 0.32% to end the session at 6,501.86 points, reaching a record high close for a second straight day. The Nasdaq followed suit, gaining 0.53% to 21,705.16 points. However, Nvidia shares dipped 0.8% due to Sino-U.S. trade uncertainties leading to the exclusion of potential China sales from its quarterly forecast.
Traders are pricing in an over 80% chance of an interest rate cut next month, indicating a cautious outlook on the economy. Declining stocks outnumbered rising ones within the S&P 500 by a 1.2-to-one ratio, suggesting a mixed market sentiment. Volume on U.S. exchanges was relatively light, with 13.8 billion shares traded.
Corporate profits rebounded in the second quarter, with CA Immo, UBM Development, and Pierer Mobility (the mother company of KTM) reporting positive half-year 2025 results. CA Immo returned to profit, UBM nearly halved its losses, and Pierer Mobility reported a high profit driven by restructuring gains, all gaining investor attention.
Investors are keeping a close eye on the Personal Consumption Expenditures data for potential inflation signs. The US labor market report and German industrial orders are expected to be closely watched by investors in the upcoming days.
Nike cut less than 1% of its corporate workforce as it struggles to reclaim market share lost to rivals. Packaging food company Hormel Foods tumbled 13% after issuing a downbeat quarterly profit forecast.
Ross Mayfield, an investment strategy analyst at Baird, stated that the market's primary structural driver, AI, is not going anywhere or cooling down. With the continued growth in AI technology, it seems the market momentum will continue in the coming weeks.
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