U.S. stocks soared on Thursday, propelled by a stellar quarterly report from Nvidia that rekindled optimism in the artificial intelligence sector and sustained the current bull run, even as robust employment data for September dampened expectations of a Federal Reserve rate cut in December.
The Dow Jones Industrial Average advanced 712 points or 1.54% to 46,851.36 points, while the S&P 500 posted a 1.9% gain to 6,768.47 points. The tech-heavy Nasdaq Composite led the gains, surging 2.54% to 23,136.27 points. The rally was further buoyed by notable increases in shares of both Walmart and Nvidia.
Nvidia shares jumped 4% following the release of its latest financial results, surpassing analysts’ estimates for both earnings and revenue. The strong performance reinforced investor confidence in the AI-driven momentum powering much of the market this year, according to sources.
Nvidia, the world’s most valuable publicly traded company, delivered quarterly earnings that surpassed Wall Street forecasts, signaling robust demand for its AI-focused semiconductor lines and alleviating investor concerns over mounting artificial intelligence expenditures.
For the three months ended October, the chip designer posted a 62% jump in revenue to $57 billion, compared to $55.19 billion expected. The surge propelled largely by surging demand in its data center segment, which saw sales surge 66% year-over-year to over $51 billion. These results position Nvidia as a representative indicator of the broader AI market, with its performance expected to steer broader tech sentiment in financial markets.
Chief Executive Officer Jensen Huang highlighted in prepared remarks that demand for the company’s AI Blackwell systems was “off the charts.” He added that “cloud GPUs are sold out,” underscoring the sweeping appetite for Nvidia’s next-generation offerings.
The firm’s forward-looking guidance further impressed analysts: Nvidia projects revenue of $65.0 billion for the fiscal fourth quarter of 2026 (plus or minus 2%), notably ahead of consensus expectations of $61.98 billion. Gross margin is forecast to come in near 74.8% under GAAP (plus or minus 50 basis points) and roughly 75% on an adjusted basis, with operating expenses estimated at around $6.7 billion (GAAP) and $5.0 billion (adjusted).
Additionally, Walmart delivered stronger-than-anticipated results for the third quarter on Thursday, with both profits and sales outpacing Wall Street forecasts, underscoring the retailer’s resilience as economic uncertainty weighs on rivals.
The world’s largest retailer posted adjusted earnings per share of $0.62, edging past the $0.60 consensus estimate compiled by Bloomberg. The company’s revenue increased 6% year-over-year to $179.5 billion, also exceeding analyst projections of $177.6 billion. This resulted in a share price surging more than 6%.
In its core U.S. operations, Walmart’s same-store sales advanced 4.5%, outstripping expectations for a 4% gain. Customer visits climbed 1.8%, while the average transaction size increased 2.7%, highlighting continued consumer engagement despite an uneasy macroeconomic landscape, the company reported.
