U.S. stocks closed higher Friday, powered by a blowout earnings report from Nvidia that reignited enthusiasm for artificial-intelligence stocks. The S&P 500 gained 0.7% to 7,730.99, the Nasdaq jumped 1.6% to 26,541.35, and the Dow Jones Industrial Average added 0.2% to close at 53,569.44.
Nvidia shares surged 8.7% after the chipmaker posted second-quarter earnings of $2.22 per share, beating analyst estimates of $2.09, on revenue of $96.22 billion that topped projections by nearly 5%. The company also projected 70% revenue growth for fiscal 2028, a forecast that fueled a broader rally in semiconductor stocks. Broadcom rose 4.5% and Intel climbed 4.4% in the tech sector’s advance.
Salesforce delivered an even sharper surprise, with shares jumping 22.6% after the software company reported quarterly earnings of $5.90 per share against expectations of $3.27, on revenue of $11.35 billion. The results helped offset a mixed week for enterprise software stocks amid ongoing questions about corporate spending on AI tools.
On the economic front, the Labor Department reported jobless claims fell to 203,000 for the week ending August 22, down 4,000 from the prior week, suggesting the labor market remains resilient even as investors weigh the path of future interest-rate moves.
