Home / Business and Economy / Tech Stocks Brace for Nvidia's Earnings
Tech Stocks Brace for Nvidia's Earnings
25 Feb
Summary
- Major stock indexes rose Tuesday as AI disruption fears lessened.
- AMD surged nearly 9% after Meta announced a multiyear deal.
- Nvidia's upcoming earnings report is crucial for market direction.
Major U.S. stock averages experienced a rise on Tuesday, with the S&P 500 and Nasdaq Composite each gaining approximately 0.8% and 1% respectively. The Dow Jones Industrial Average also saw a significant increase of 370 points. This upward movement was largely attributed to dissipating fears of artificial intelligence disrupting various industries.
A significant driver of the market's advance was Advanced Micro Devices (AMD), which saw its stock price jump by nearly 9%. This surge followed Meta Platforms' announcement of a multiyear partnership with the semiconductor company. Additionally, software and cybersecurity stocks benefited from a relief rally, partly spurred by Anthropic's launch of new connectors for its AI tool, Claude Cowork.
These gains occurred as investors awaited key earnings reports, including Nvidia's quarterly results, due after Wednesday's market close. Nvidia's performance is seen as a crucial indicator for the U.S. stock market's sentiment, though its importance has slightly diminished with recent AI developments. Investors are also monitoring geopolitical tensions, including tariff hikes, and President Trump's upcoming State of the Union address.
