Tech stocks lead Wall Street after Nvidia, Salesforce and others say AI is creating big growth

Technology stocks propelled Wall Street higher on Thursday as Nvidia, Salesforce, and other firms reported profits exceeding analysts' expectations due to artificial intelligence advancements. The S&P 500 rose 0.7%, bringing it closer to its record high set earlier this month, while the Dow Jones Industrial Average gained 105 points (0.2%) and the Nasdaq composite surged 1.6%.

Nvidia led the charge with an 8.7% increase after exceeding profit and revenue forecasts. CEO Jensen Huang emphasized AI's growing value, stating it's now producing tangible results. Salesforce also benefited, jumping 22.6% after reporting one of its best quarters ever, attributing success to strong AI and data product demand. The company raised its full-year revenue forecast and announced a new partnership with Anthropic's Claude chatbot.

Other tech giants faced mixed results, with HP falling 2.9% due to concerns about personal computer sales and rising commodity prices. Retailers like Best Buy and Best Buy also declined, reflecting ongoing inflationary pressures and economic uncertainty. Dollar General and other dollar stores saw gains, potentially aided by inflation-driven consumer shifts.

The S&P 500 closed at 7,730.99, the Dow Jones at 53,569.44, and the Nasdaq at 26,541.35. Bond yields climbed slightly amid inflation and economic indicators, with the 10-year Treasury rising to 4.67%. Federal Reserve Chair Kevin Warsh's speech on Friday will be closely watched for clarity on interest rate policy adjustments. Oil prices rose 1.8% to $88.52 as uncertainty lingers over Iran's war impact on global oil shipments. In other major markets, European and Asian stocks showed mixed performances.