Dow rallies 400 points to new high as August comeback picks up steam: Live updates

Stocks rose Thursday, as investors looked to recover from declines seen in the previous session. Wall Street also weighed post earnings moves from Nvidia and Salesforce.

The S&P 500 rose 0.8% and the Nasdaq Composite gained 1%. The Dow Jones Industrial Average rose 427 points, or 1%.

Nvidia was down nearly 4% after posting its latest earnings Wednesday afternoon. In its fiscal second quarter, the AI chipmaker exceeded expectations on the top and bottom lines, and issued a rosy current-quarter sales outlook.

“Death, taxes, and NVDA beats on earnings are three things you can bank on. Here’s the issue, the size of the beat this time was much smaller than we’ve been seeing. Even future guidance was raised, but again not by the tune from previous quarters,” wrote Ryan Detrick, chief market strategist at Carson Group.

“This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season,” Detrick added.

That decline was offset by a pop in Salesforce. Shares traded less than 1% higher in the morning after the business software giant beat fiscal second-quarter estimates and raised its full-year profit outlook.

“This is actually incredibly positive and bullish to have a market day where Nvidia, which is the bellwether for AI, to be down and the broad market, especially technology and semiconductors, to be strongly up on the day. It just speaks to the broadening that we’re starting to see in this rally,” said Scott Ladner, chief investment officer at Horizon Investments.

Economic data released Thursday lent support to the stock market. Weekly jobless claims fell from the prior week, further easing recession concerns. In addition, second-quarter gross domestic product was revised higher to 3% growth from an initial 2.8% rate.