The S&P 500 advanced on Wednesday, snapping a four-day losing streak as a rebound in technology stocks encouraged investors ahead of Nvidia’s highly anticipated earnings report.
The broad market index gained 0.38% to close at 6,642.16. The tech-heavy Nasdaq Composite rose 0.59% to 22,564.23, while the Dow Jones Industrial Average added 47 points, or 0.1%, to finish at 46,138.77. Wednesday’s session broke a four-day slide for both the S&P 500 and the Dow, with the S&P 500 marking its longest losing streak since August.
Alphabet shares surged approximately 3% to reach a new all-time high, fueled by optimism following Tuesday’s launch of its next-generation AI model, Gemini 3.
Fellow “Magnificent Seven” member Nvidia also climbed about 3% as traders positioned for its third-quarter results due after the market close. Analysts widely anticipate the semiconductor giant will surpass Wall Street’s expectations and issue a strong sales forecast, driven by robust demand for its AI chips.
The rally follows a recent pullback for the stock, a development that some analysts view as healthy. “It’s more challenging for a stock to outperform on the day of its earnings when the stock has run up into earnings, so it’s actually probably a healthy thing that Nvidia has pulled back a bit,” said Michael Sheldon, senior portfolio manager at Washington Trust Wealth Management. He added that this “increases the odds that a positive report will be greeted with a positive market reaction.”
Despite Wednesday’s optimism, Nvidia faces high expectations. Recent profit-taking in technology stocks reflects broader investor concerns that the AI boom has inflated valuations to unsustainable levels.
“People are just starting to ask the question, as they should, ‘You guys are committing to spending trillions of dollars into your data centers and your AI capabilities… when are we going to see the results of that?'” said Scott Welch, chief investment officer at Certuity. “There’s nothing wrong with the AI trade, but it may not go to the moon tomorrow. There’s never, ever in history been an experience where markets have gotten this elevated and not corrected.”
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