U.S. stocks edged higher on Thursday as investors welcomed blockbuster earnings from Nvidia and a string of strong software results. The S&P 500 gained about 0.7%, while the Nasdaq Composite advanced as technology shares rallied and the Dow Jones Industrial Average also moved higher.
Nvidia jumped nearly 9% after delivering another massive earnings beat and stronger-than-expected guidance, helping reinforce confidence in the AI trade. Salesforce, CrowdStrike, and Okta posted even larger gains after their own results, giving Wall Street fresh evidence that AI spending is translating into growth across both hardware and software.
Market Movers:
- Okta (OKTA) +24%: Shares surged after the identity-management company reported adjusted EPS of $1.05 on revenue of $805 million, with current remaining performance obligations rising 14% to $2.59 billion. Okta also raised its fiscal 2027 outlook, forecasting revenue of $3.22 billion to $3.23 billion and adjusted EPS of $3.90 to $3.94.
- Salesforce (CRM) +20%: Shares jumped after revenue climbed 11% year over year and management raised its fiscal 2027 earnings outlook well above Wall Street expectations. AI and data products are approaching $4 billion in annual recurring revenue, while an expanded Anthropic partnership helped ease concerns that Salesforce could fall behind in the AI race.
- CrowdStrike (CRWD) +19%: Shares rallied after annual recurring revenue climbed 25% to $5.84 billion and both adjusted operating income and free cash flow topped expectations. The cybersecurity company also raised its annual revenue forecast as management pointed to accelerating demand for protecting AI-driven enterprise environments.
- Nvidia (NVDA) +8%: Shares surged after the chipmaker reported adjusted EPS of $2.22 on $96.2 billion in revenue, comfortably topping expectations, as Data Center revenue climbed to roughly $89 billion. Nvidia guided third-quarter revenue to about $108 billion at the midpoint, above consensus, while CEO Jensen Huang said next-generation Vera Rubin systems are now in full production.
- Dollar General (DG) +6%: Shares gained after the discount retailer beat quarterly earnings and revenue expectations while posting its fifth consecutive quarter of traffic growth. Dollar General raised its fiscal 2026 EPS forecast to $7.80-$8.00 and now expects same-store sales growth of 2.5%-2.9%.
- Wendy’s (WEN) -12%: Shares tumbled after reports indicated Nelson Peltz’s Trian Fund Management does not currently plan to pursue a takeover of the fast-food chain. The decision shifts attention back to new CEO Bob Wright’s turnaround strategy as Wendy’s works to improve food quality, value, operations, store performance, and digital sales.
- HP (HPQ) -6%: Shares fell despite stronger-than-expected fiscal third-quarter results and a raised full-year outlook. Personal Systems revenue jumped 18%, but investors appeared unconvinced by the broader growth picture even as HP lifted its adjusted EPS and free cash flow forecasts.
- Moderna (MRNA) -5%: Shares declined after the biotech announced plans for a $2 billion convertible senior notes offering that could increase to $2.3 billion. Proceeds are expected to support general corporate purposes, potential oncology investments, debt repayment, and capped-call transactions.
Nvidia Delivers Another AI Gut Check
Nvidia once again cleared Wall Street’s increasingly high bar. Revenue surged more than 100% from a year ago, while Data Center sales exceeded expectations as hyperscalers, AI labs, and enterprises continued pouring money into computing infrastructure. More importantly, Nvidia’s guidance suggested the boom is not slowing yet. The company expects approximately $108 billion in third-quarter revenue despite assuming no contribution from China, while Huang said Vera Rubin production is ramping to meet accelerating global demand.
Software Stocks Push Back Against AI Disruption Fears
Thursday’s rally extended beyond semiconductors. Salesforce, CrowdStrike, and Okta all posted double-digit gains, offering a sharp counterargument to fears that generative AI could undermine traditional software companies. Salesforce highlighted nearly $4 billion in AI and data ARR, CrowdStrike pointed to AI security as a major new growth opportunity, and Okta benefited from increasing demand for identity controls as companies deploy more autonomous AI agents. The results suggest parts of the software industry are finding ways to monetize — rather than simply defend against — the AI transition.
Earnings Season Finishes on a Strong Note
Second-quarter earnings season is approaching its conclusion with corporate profits showing remarkable strength. S&P 500 earnings are on pace to rise roughly 50% year over year, the strongest growth rate since 2021, with artificial intelligence serving as one of the biggest drivers.
The reaction has not been uniformly positive, however. Marvell slipped despite beating expectations and raising guidance, showing just how demanding investors have become after enormous gains across AI-related stocks. Strong numbers alone are increasingly insufficient when valuations already reflect aggressive growth assumptions.
Looking Ahead
Attention now turns toward Fed Chair Kevin Warsh and the Jackson Hole gathering, where investors will look for clues about the path of interest rates after recent inflation readings remained stubbornly elevated. Treasury yields and monetary policy remain important risks for high-growth technology stocks even as earnings continue to impress. For the moment, Nvidia and the software sector have given the AI trade another major vote of confidence. The next challenge is whether earnings growth can continue keeping pace with valuations as investors demand increasingly clear evidence that hundreds of billions of dollars in AI spending are translating into durable profits.