NEW YORK, Aug. 27 (Xinhua) -- U.S. stocks ended higher on Thursday, propelled by a strong rally in technology shares after Nvidia delivered robust quarterly results that supported broader market optimism.
The Dow Jones Industrial Average rose 105.56 points, or 0.2 percent, to 53,569.44. The S&P 500 added 55.29 points, or 0.72 percent, to 7,730.99. The Nasdaq Composite Index increased by 411.16 points, or 1.57 percent, to 26,541.35.
However, 10 of the 11 primary S&P 500 sectors actually ended in the red, with consumer staples and health leading the laggards by losing 1.5 percent and 1.1 percent, respectively. Technology bucked the trend, adding 3.4 percent.
Semiconductor and technology shares led the day's gains following earnings reports from Nvidia, Salesforce, and cybersecurity firm CrowdStrike. Nvidia surged 8.74 percent after the chipmaker reported a bottom-line beat and forecasted strong AI hardware demand extending into next year, reassuring investors about the sustainability of the AI infrastructure boom. The company's earnings momentum also lifted peers across the semiconductor ecosystem and provided a tailwind for utility and power producers supporting data center expansion.
Adding to investor focus, media reports indicated that Nvidia agreed to acquire open-source AI model hub Hugging Face for 12.9 billion U.S. dollars, following recent remarks from Nvidia Chief Executive Officer Jensen Huang emphasizing the company's aggressive expansion in AI software and infrastructure.
Melius Research says Nvidia's earnings print was also good for power producers. "Powered land is now the binding constraint to AI," Melius managing director James West said Thursday. "This is a clear positive for the dominant Independent Power Producers."
On the macroeconomic front, the U.S. Department of Labor reported that initial filings for state unemployment benefits dropped to a seasonally adjusted 203,000 for the week ending August 22. The reading came in lower than consensus forecasts of 208,000, underscoring continued strength in the domestic labor market.
Meanwhile, U.S. Treasury yields stabilized after spiking last week, as market participants evaluated recent federal intervention in the bond market and the outlook for Federal Reserve interest rate policy. All eyes are now turning to the central bank's annual economic symposium in Jackson Hole, Wyoming, where Fed Chairman Kevin Warsh is scheduled to deliver a keynote address on Friday.
In the retail sector, discount chains Dollar General and Dollar Tree both reported better-than-expected quarterly earnings, bolstered by an influx of middle and higher income shoppers seeking value, though their stock performances diverged based on differing forward guidance.
