Wall Street closed at new highs on Thursday as investors digested results from chipmaker Nvidia and fresh US economic data. The S&P 500 gained 0.32% to finish at 6,501.86, after briefly topping the 6,500 mark for the first time intraday. The Nasdaq Composite rose 0.53% to 21,705.16, while the Dow Jones Industrial Average added 71 points, or 0.16%, to close at 45,636.90, also a record.
Seven of the S&P’s 11 sectors advanced, led by communication services, as optimism about the artificial intelligence boom continued to support sentiment.
Nvidia earnings in focus
Nvidia reported second-quarter revenue growth of 56%, comfortably ahead of Wall Street estimates. But despite the strong headline numbers, shares slipped 0.8% after an initial bounce. Analysts cited two sticking points: revenue from the data-centre unit was just below forecasts, and the company’s third-quarter revenue guidance of US$54bn was only marginally above expectations of US$53.1bn.
Notably, Nvidia’s forecast excludes any sales of its H20 chips to China — sales that remain subject to US government approval. Analysts including Ben Reitzes of Melius Research said the omission dampened enthusiasm but stressed that growth outside China remains strong, with further gains expected into the fourth quarter.
Analyst reactions and sector spillover
Despite the cautious share move, Wall Street firms including JPMorgan, Citi and Bernstein lifted their 12-month price targets for Nvidia, citing continued dominance in AI hardware. Other chipmakers benefited from the optimism: Broadcom climbed 2.8% and Micron Technology gained 3.6%. Cloud-data group Snowflake surged 20% after beating expectations, reinforcing confidence that the AI trade has further to run.
Economic backdrop
Beyond corporate earnings, economic data added to the upbeat tone. The Commerce Department revised second-quarter GDP growth to an annualised 3.3%, ahead of both the initial 3% reading and consensus forecasts. Investors also looked past political turbulence, with Federal Reserve Governor Lisa Cook challenging her dismissal by President Trump in court. A hearing is set for Friday.
Markets now await July inflation data, due tonight. Economists expect the personal consumption expenditures price index to rise 0.2% for the month and 2.6% year-on-year.
Australian outlook and commodities
The SPI 200 futures are pointing to a softer open, down 30 points or 0.3% to 8,928, despite the overnight rally in New York. Currency and commodity markets were mixed: the Australian dollar strengthened 0.4% to US65.31¢, gold rose 0.6% to US$3,417 an ounce, and Brent crude added 0.4% to US$68.33 a barrel. Iron ore advanced 2% to US$104.50 a tonne.
Bond yields were little changed, with the US 10-year at 4.20% and Australia’s at 4.28%.
Looking ahead
On today’s agenda, Virgin Australia reports earnings, while July private sector credit figures are due at 11:30am. Later tonight, the US publishes personal spending and core PCE figures, a key input for Federal Reserve policy.
Wall Street will be closed on Monday for the Labor Day holiday.
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