Wall Street Climbs Amid Robust U.S. Economy, Nvidia Slips

Wall Street indexes rose on Thursday as strong U.S. economic data alleviated investor fears of a recession. Nvidia shares fell after its revenue forecast failed to exceed expectations, despite positive second-quarter results. Other tech stocks, including Microsoft and Apple, saw gains, boosting the tech sector.

Wall Street indexes experienced an uptick on Thursday, fueled by data indicating a strong U.S. economy. Nvidia's shares, however, disappointed by slipping due to a revenue forecast that did not surpass investors' high expectations, despite a promising second quarter.

According to Robert Pavlik, senior portfolio manager at Dakota Wealth, the U.S. economy is not heading into a recession soon, which bodes well for the stock market. There is also a high likelihood of a rate cut in September. Nvidia's in-line revenue forecast for the current quarter, contrasted with upbeat second-quarter results, left investors unsatisfied.

While Nvidia's shares fell by 2.0%, competing semiconductor companies Broadcom and Advanced Micro Devices saw their shares rise, contributing to a 1.2% increase in the Philadelphia SE Semiconductor Index. Meanwhile, mega-cap tech stocks like Microsoft, Meta, and Alphabet all gained over 0.9%, with Apple rising over 2% after being named Citigroup's top AI pick over Nvidia.

(With inputs from agencies.)