US stocks open in the green: Nasdaq up 0.7%, Dow jumps 0.5%

US equities advanced on Wednesday, supported by strength in major technology names, as investors looked to extend gains from the previous session.

The Dow Jones Industrial Average rose 224 points, or 0.5%.

The S&P 500 gained 0.5%, while the Nasdaq Composite added about 0.7%, reflecting broad-based buying across growth-oriented sectors.

Market sentiment was underpinned by renewed confidence in artificial intelligence-linked stocks, even as investors continued to reassess elevated valuations and rising capital expenditure across the technology industry.

Nvidia in focus ahead of earnings

Shares of Nvidia rose nearly 1% ahead of the company’s quarterly earnings report, due after the market close.

Results from Salesforce and Snowflake were also scheduled for release later in the day.

Nvidia’s earnings are being closely watched as investors seek clarity on demand trends and pricing power amid growing scrutiny of hyperscalers’ AI-related spending.

Investors are increasingly focused on whether Nvidia can continue to justify premium valuations in an environment of intensifying competition and rising infrastructure costs.

Nvidia’s guidance, in particular, is expected to shape near-term sentiment toward the AI trade.

A strong outlook could reinforce confidence in continued infrastructure investment, while any signs of slowing demand may prompt further valuation reassessments.

Shares of Oracle climbed more than 2% after the stock was upgraded by Oppenheimer, which cited a “favourable” risk-reward profile following the company’s recent pullback.

The upgrade helped extend a rebound in software stocks that began in the previous session.

The broader technology software sector continued to trade higher, with names such as Palantir Technologies and Microsoft posting gains.

Not all software stocks participated in the rally. Workday fell about 9% after issuing a weaker-than-expected revenue outlook, highlighting continued selectivity among investors.

Relief rally after AI disruption fears

Wednesday’s gains followed a positive session on Tuesday, when major indices advanced as concerns about AI-driven disruption across several industries eased.

On Tuesday, Advanced Micro Devices supported the broader market after Meta Platforms announced a multiyear partnership with the chipmaker.

Software and cybersecurity stocks also benefited from a relief rally after Anthropic launched new connectors and plugins for its Claude Cowork tool.

The features allow companies to link the AI platform to existing enterprise applications, reducing fears that the product would directly displace incumbent software vendors.

Those concerns had weighed on the sector in recent weeks, as investors worried about potential revenue erosion from generative AI tools.

Tariffs and geopolitics remain in focus

Beyond earnings, investors continued to monitor geopolitical and trade-related risks.

Tensions between the US and Iran remain elevated, while trade policy uncertainty persists.

Over the weekend, President Donald Trump threatened to raise global tariffs to 15%.

A 10% duty on global imports was implemented on Tuesday.

Trump addressed Congress on Tuesday evening, highlighting the state of the economy and outlining several policy proposals.

He reiterated plans to offer workers access to government-backed retirement accounts and renewed calls to restrict large institutional investors from purchasing single-family homes.

These developments have added another layer of uncertainty to markets already grappling with questions over inflation, interest rates, and global growth.

With major companies reporting results this week, investors remain focused on whether strong revenue growth can offset concerns over rising capital intensity.