S&P 500 broke above 6,500 for the first time after Nvidia’s earnings

The S&P 500 jumped past 6,500 for the first time in history on Thursday after investors reacted to Nvidia’s second-quarter results.

The index rose 0.3% intraday, breaking its previous high. The Nasdaq Composite moved up 0.6%, while the Dow Jones Industrial Average added 81 points, or 0.2%, according to data from CNBC.

Traders saw Nvidia’s report as confirmation that the AI rally is still alive, even if there were a few weak spots in the numbers.

Nvidia, which now makes up around 8% of the S&P 500, posted 56% revenue growth, beating Wall Street’s expectations. But two things caught attention.

Its data center revenue came in just shy of forecasts, and the company’s forward guidance of $54 billion for the current quarter was only slightly above the $53.1 billion estimated by analysts at LSEG.

The stock slipped before the open but reversed course, trading 0.5% lower by midday. Still, the company made it clear that none of that forward guidance includes revenue from H20 chip sales to China.

Ben Reitzes, head of tech research at Melius, said on CNBC’s “Squawk Box” that “they didn’t include China in their guide, and some people were hoping there were some China sales in there, maybe a little firmer stance that China sales could get going.” He added, “The core growth outside of China was really good. There should be more great growth in the fourth quarter, so I think we’re all systems go.”

Chipmakers bounce after initial dip

Despite the minor pullback, several analysts grew more bullish on Nvidia after the report. Firms like JPMorgan, Citi, and Bernstein raised their price targets, signaling more upside potential.

Investors watching the AI trade stayed engaged, with names like Broadcom and Micron Technology both climbing around 3% after slipping early on. The report also revived confidence across the chip sector.

Elsewhere, Snowflake (another AI-linked name) jumped roughly 22% after its second-quarter earnings beat forecasts. Its surprise surge added to the tech-driven gains seen across major indexes.

The S&P 500 had already posted a winning session on Wednesday, with expectations for a strong Nvidia report lifting the index to record levels. Thursday’s actual earnings only pushed it higher. Meanwhile, political pressure on the Federal Reserve added another layer of uncertainty.

Earlier this week, President Donald Trump told Fed Governor Lisa Cook she was fired. On Thursday, Cook responded by filing a lawsuit to challenge the move. A federal judge is expected to hold a hearing on Friday.

GDP beats forecast as rate bets return

On the economic front, the Commerce Department released its revised second-quarter GDP figure, showing a 3.3% annualized growth rate. That topped both the previous 3.0% estimate and the 3.1% forecast from Dow Jones.

The stronger growth gave investors more to work with as they look ahead to the Personal Consumption Expenditures (PCE) inflation report due Friday. Economists surveyed by Dow Jones are predicting a 0.2% monthly increase and a 2.6% year-over-year rise in the July reading.

What happens next will likely come down to the Fed. Manish Kabra, lead U.S. equities and multi-asset strategist at Societe Generale, told clients in a note that “we believe the bigger driver for equities will be the Fed and rate-cut outlook.”

He also projected that the Fed will cut interest rates by over 100 basis points across the next 12 months.

So, between Nvidia’s numbers, Washington’s drama, economic beats, and fresh inflation data on deck, the S&P 500 just bulldozed into uncharted territory.

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