Tech Stocks Rally Ahead of Nvidia Earnings: AI Optimism Resurges

Wall Street extended its technology-led rally on Wednesday, riding a wave of optimism ahead of Nvidia's quarterly results. The major U.S. stock indexes soared to two-week highs, buoyed by renewed belief in artificial intelligence's promise, despite concerns about its potential industry disruptions.

Nvidia is expected to significantly boost its earnings, fueled by the market's investment frenzy in AI infrastructure. The Philadelphia SE Semiconductor index reflected this anticipation with an impressive 1.8% jump. Investors are adopting a 'buy on the dip' mentality, as highlighted by Wealthspire Advisors' Oliver Pursche, suggesting market resilience amid recent volatility.

The technology sector led the gains among the S&P 500's major sectors, overshadowing losses in real estate and select staples. As results from Salesforce, Intuit, and Snowflake loom, their volatility remains a focal point for investors, indicative of the tech sector's continued dynamism.