NEW YORK — U.S. stocks closed higher Thursday as blockbuster results from Nvidia and Salesforce reignited enthusiasm for artificial intelligence, lifting the Nasdaq sharply and pushing the S&P 500 close to a record.
The Dow Jones Industrial Average rose 105.56 points, or 0.20%, to 53,569.44.
The S&P 500 gained 0.72% to 7,730.99, while the Nasdaq Composite surged 1.57% to 26,541.35.
Technology did most of the heavy lifting.
Nvidia jumped about 8.7% after reporting quarterly revenue of $96.2 billion and issuing another powerful growth outlook, reinforcing the view that spending on AI infrastructure remains exceptionally strong.
CEO Jensen Huang said AI has reached an “inflection point,” and investors responded by buying semiconductor and technology shares across the market.
Salesforce surged more than 22%, its strongest session in years, after stronger earnings and evidence that its AI products are beginning to translate into meaningful recurring revenue.
The combination helped turn Thursday into one of the strongest technology sessions of the week.
But the rally was narrower than the major indexes suggested.
Most S&P 500 stocks actually finished lower, meaning a relatively small group of large technology companies accounted for much of the market’s gain.
That distinction matters.
Investors are showing enormous confidence in companies directly benefiting from the AI spending boom, while many businesses tied more closely to ordinary consumer spending continue to struggle.
Best Buy fell roughly 4.5% despite raising its annual sales forecast, as investors focused on cautious consumers and rising electronics costs.
HP also declined more than 4% as higher memory-chip prices pressured the outlook for personal computers.
Dollar General gained about 2.5% after stronger profits, while Dollar Tree fell after its forecast disappointed investors.
The bond market remained another important pressure point.
Treasury yields stayed elevated as investors prepared for Federal Reserve Chair Kevin Warsh’s Jackson Hole speech Friday.
Strong labor-market data and inflation still running above the Fed’s 2% target have reduced expectations that policymakers will be able to lower interest rates anytime soon.
Oil also moved higher amid renewed uncertainty surrounding Iran and the Strait of Hormuz.
That keeps another inflation risk alive for businesses, particularly transportation, manufacturing and consumer-facing companies already dealing with higher borrowing costs.
Thursday therefore produced a clear split.
The AI economy is accelerating, with Nvidia, Salesforce and other technology companies showing extraordinarily strong demand.
The broader economy is much less uniform.
Consumers remain selective, financing remains expensive and energy prices remain volatile.
Friday could determine which side of that story dominates next.
Fed Chair Kevin Warsh is scheduled to speak at Jackson Hole, and investors will be listening closely for any indication that persistent inflation could keep interest rates elevated — or even require additional tightening.
For now, Wall Street’s message is clear:
Investors are willing to pay aggressively for proven AI growth, even while remaining cautious about almost everything else.
JBizNews Desk | Wall Street
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