The S&P 500 rose for a second day in a row ahead of Nvidia’s blockbuster earnings report.
The market benchmark rose 0.2%. The Dow Jones Industrial Average rose 147 points, or 0.3%. The Nasdaq Composite rose 0.2%.
Nvidia, the largest U.S. company by market capitalization, is set to report fiscal second-quarter results in the next half-hour or so. The stock closed down slightly ahead of the report.
The stock market was mostly quiet on Wednesday, though the S&P rallied off its lows after also doing so on Tuesday. Energy stocks led the index as WTI crude oil futures rose for their fifth time in six sessions to hit $64.15 a barrel.
The yield on the 2-year Treasury note dipped to 3.62%, while the 10-year yield was down to 4.24%.
Nvidia was not just the biggest event of the day, but possibly the month—at least according to Sevens Report Research’s Tom Essaye.
“If NVDA disappoints, it risks not only sending AI stocks lower, but also the entire market,” Essaye writes.
With its artificial intelligence chips servicing as the main tools in the AI gold rush, the firm serves as a bellwether for broader demand. It, along with other key AI firms, is also a big driver in the S&P 500’s gains.
“Markets are pricing substantial AI earnings growth that will drive S&P 500 earnings sharply higher,” Essaye writes. “If AI earnings growth disappoints, this market has a large valuation problem.”
That sets a high bar, though Nvidia has made a habit of clearing such marks.