The S&P 500 and Nasdaq climbed to two week highs as investors positioned ahead of Nvidia’s quarterly earnings, a report widely seen as pivotal for the direction of technology stocks and the broader market.
By late morning trading, the Dow Jones Industrial Average was up 0.43 percent, while the S&P 500 gained 0.67 percent and the Nasdaq Composite advanced 1.07 percent. The rally was led by heavyweight technology names, reflecting renewed confidence in artificial intelligence related investments after a volatile start to the year.
Nvidia shares rose 2.2 percent ahead of its results, which are scheduled for release after the closing bell. As the largest company by market capitalization and a central player in the AI semiconductor supply chain, Nvidia’s performance is closely watched as a gauge of whether the massive capital spending plans announced by major technology firms are translating into sustained profit growth. Analysts estimate that large technology companies have earmarked roughly 630 billion dollars for capital expenditures in 2026, much of it tied to AI infrastructure and data center expansion.
Options markets indicate traders expect a post earnings move of about 5.6 percent in either direction for Nvidia, marking one of the smallest implied swings ahead of its results in several years. That suggests investors may be bracing for solid but not explosive updates.
The Philadelphia Semiconductor Index rose 1.4 percent to a record high, even as performance across individual chipmakers remained mixed. The S&P 500 information technology index climbed 1.7 percent, while communication services gained 0.7 percent and financials added 1.2 percent.
Technology stocks have faced choppy trading in February as investors questioned whether the surge in AI spending would deliver sufficient returns. Earlier concerns that AI driven disruption could pressure software, commercial real estate and logistics companies contributed to sector wide declines. The S&P 500 software and services index rose 2.3 percent on the day but remains down more than 21 percent for the year.
Corporate earnings continued to drive stock specific moves. Axon Enterprise surged over 21 percent after reporting better than expected fourth quarter profits. In contrast, GoDaddy fell nearly 16 percent after issuing annual revenue guidance below market expectations. Lowe’s also declined after projecting weaker sales and profit for the year.
Broader market sentiment was influenced by policy developments. A temporary 10 percent global tariff recently took effect following a Supreme Court ruling that invalidated several prior trade measures. Investors are still assessing the potential economic impact of shifting trade policies and any future adjustments.
Market breadth was positive, with advancing stocks outnumbering decliners on both the New York Stock Exchange and Nasdaq. The S&P 500 recorded dozens of new 52 week highs, underscoring the strength in selected sectors even as technology remains the primary driver of index performance.
