S&P 500 Surges as Alphabet Leads Gains; Wall Street Eyes Nvidia Earnings — Live Updates
The S&P 500 rebounded on Wednesday after four straight days of losses, boosted mainly by a strong rally in Alphabet shares. Investors shifted back into artificial intelligence (AI) stocks, hoping that Nvidia’s upcoming earnings would help ease the growing fear that AI companies may be overpriced or drifting into hype-driven territory.
The S&P 500 index advanced 0.6%, while the Nasdaq Composite posted a 1.1% gain. Meanwhile, the Dow Jones Industrial Average stayed mostly unchanged, hovering near the flatline.
Alphabet’s 5% Jump Lifts the Market
Optimism Around Gemini 3
A key catalyst for the broader market was a 5% spike in Alphabet stock, driven by excitement surrounding the company’s newest AI model, Gemini 3, unveiled on Tuesday. Traders saw the update as a sign that Alphabet is strengthening its position in the AI race, adding momentum to the AI-focused tech sector.
Nvidia Gains Ahead of Earnings
High Expectations for the AI Chip Leader
Nvidia stock also moved higher, climbing over 2% before releasing its third-quarter earnings after the closing bell. Analysts expect Nvidia — now the largest company in the S&P 500 — to deliver results that outperform Wall Street forecasts.
Demand for Nvidia’s AI chips, data-center infrastructure, and high-performance computing products continues to surge, leading many to predict strong revenue growth.
However, Nvidia faces intense pressure. After months of massive gains, the company must beat increasingly lofty expectations. Investors have trimmed their tech positions recently, reflecting anxiety that the AI boom may be inflating valuations too quickly, especially for hyperscalers like Nvidia.
Are AI Stocks in a Bubble?
Mixed Sentiment Among Analysts
Despite the rising concerns, some analysts remain confident. Chris Senyek of Wolfe Research wrote that fears of an AI bubble bursting are “overblown for now.”
He added that if the U.S. economy slows, major Tech and Communication Services firms — especially AI-driven companies — are in a good position to withstand weaker data. Wolfe Research’s stance remains bullish, stating they continue to buy AI-related stocks when prices dip, but are waiting for either a strong Nvidia surprise or a deeper market pullback before becoming more aggressive.
Recent Market Performance
A Tough Week for Equities
Tuesday marked the fourth consecutive decline for both the Dow and the S&P 500, with the S&P 500 recording its longest losing streak since August.
The Nasdaq Composite, heavily weighted toward tech stocks, posted its fifth loss in six sessions, reflecting investor caution across the technology landscape.
Even outside equities, markets showed volatility. Bitcoin briefly fell below $90,000 before bouncing back later in the day, while gold prices climbed after hitting a one-week low.