Stocks achieved a robust opening on Wednesday, maintaining their upward trajectory throughout the day, fueled primarily by impressive gains from major technology companies in anticipation of Nvidia’s much-anticipated earnings report. The blue-chip Dow Jones Industrial Average ended the day up 0.6% at 49,482. The broader S&P 500 saw an increase of 0.8%, closing at 6,946, while the tech-heavy Nasdaq Composite surged 1.3% to finish at 23,152.
A significant highlight of the market was Bitcoin, which experienced a notable rise of 7.7%, reaching $69,200, marking its highest value in over a week. This resurgence in cryptocurrency prices also positively impacted shares of companies tied to the sector, with Coinbase Global gaining 13.5% and Robinhood Markets climbing 5.6%.
The day’s attention was largely focused on the tech sector, particularly as investors were eager for insights from Nvidia’s fiscal 2026 fourth-quarter results, set to be released after the market closed. Nvidia has emerged as a critical player in the ascendancy of artificial intelligence, being the largest company in the world by market capitalization at approximately $4.76 trillion. Investors see Nvidia’s earnings as pivotal because they are indicative of AI spending trends and also reflect the health of its business partners such as CoreWeave and Nebius Group.
Analysts stress the importance of Nvidia’s guidance in conjunction with its earnings report. Guidance indicating robust, widespread demand across sectors is anticipated to drive market sentiment even further. As the day progressed, investors were prepared to follow the earnings call closely, seeking key insights on future growth.
In the broader earnings landscape, Axon Enterprise stood out with a dramatic 17.6% increase after it reported better-than-expected fourth-quarter earnings and revenue. The company, known for its Taser products and AI safety solutions, revised its three-year outlook upwards, indicating strong momentum across key customer segments.
Conversely, Lowe’s reported earnings that surpassed expectations but saw its shares decline by 5.6% due to a less optimistic outlook for full-year earnings per share. CEO Marvin Ellison pointed to elevated mortgage rates as a persistent challenge affecting housing turnover and new home starts, suggesting any improvement in home improvement markets would be gradual.
In non-earnings related news, Oracle’s stock rose 1.2% following an upgrade from Oppenheimer analyst Brian Schwartz. He shifted the rating from Perform to Outperform and set a price target of $185, suggesting a 23% upside from current levels. Schwartz indicated that despite Oracle’s recent 50% slide in stock prices since September, favorable risk/reward dynamics may signal a turnaround driven by expected strong earnings growth and improved positioning in the AI landscape.
Market participants are keenly watching these developments, as they reflect broader economic trends and investor sentiment in a rapidly changing financial landscape.
