US sharemarkets rose on Wednesday, building on the prior session’s relief rally as investors positioned ahead of Nvidia’s closely watched earnings report. The S&P 500 added 0.81% to close at 6,946.13, the Nasdaq Composite climbed 1.26% to 23,152.08, and the Dow Jones Industrial Average gained 307 points, or 0.63%, to 49,482.15.
Technology stocks again led the advance. Nvidia rose 1.4% ahead of its results, which come amid heightened scrutiny of artificial intelligence spending and elevated valuations across the sector. Oracle gained 1% after receiving an analyst upgrade, while broader software names extended their recovery from earlier weakness.
Software bounce gathers pace
The iShares Expanded Tech-Software ETF rose 3%, following a near 2% gain in the previous session, as investors reassessed the impact of artificial intelligence on enterprise software. Palantir and Microsoft moved higher, though Workday fell after issuing a softer revenue outlook.
The market’s recent tone suggests a shift from broad selling across AI-linked stocks toward more selective positioning. Gains in information technology and financials helped support the broader indices.
Tariffs and policy backdrop
Investors also continued to monitor geopolitical and trade developments. A 10% global US tariff came into effect earlier in the week after President Donald Trump threatened to raise the rate to 15%. The president used his State of the Union address to promote the strength of the economy and outline additional policy proposals.
Australian market outlook
Australian shares are set to open higher on Thursday, tracking the gains on Wall Street. ASX 200 futures were up 60 points, or 0.66%, to 9,140.
Locally, attention turns to a busy reporting session, including results from Qantas, Ramsay Health Care, Sigma Healthcare, Super Retail and Worley. Fourth-quarter private capital expenditure data is due at 11.30am AEDT, with forecasts pointing to a modest quarterly increase.
Offshore, markets will focus on Nvidia’s earnings after the US close, with options markets pricing in a significant post-results move.
