US markets experienced mixed outcomes as investors navigated a busy earnings season, sector rotations, and positive signs from the labour market, with Nvidia’s AI leadership adding to market momentum.
US stocks ended Thursday with a mixed tone as investors digested a crowded earnings slate, a steadier-than-expected labour market and fresh signs that traders were still shuffling money between sectors. According to the CoinCentral report, the Nasdaq Composite rose 0.5% after opening lower, helped by a sharp rebound in semiconductor shares, while the S&P 500 edged up 0.2%. The Dow Jones Industrial Average, which had briefly traded at a record level earlier in the day, slipped back as several heavyweight constituents came under pressure.
Chipmakers drove much of the volatility. AMD fell more than 7% after its earnings update, while Sandisk and Western Digital also sold off as investors reassessed the outlook for parts of the AI and storage supply chain. The iShares Semiconductor ETF, which had dropped early in the session, later recovered to finish up 2%, underscoring how quickly sentiment can swing in a market still fixated on artificial intelligence spending and the returns it may or may not deliver.
Nvidia stood out from the broader weakness. Tom’s Hardware reported that Elon Musk said SpaceX and xAI would use Nvidia graphics processors exclusively, describing them as the best option available. That news helped Nvidia extend gains and added momentum to a stock that has remained at the centre of the AI trade. The same report said Musk also praised Nvidia’s Vera Rubin NVL72 system, while a separate Axios account of SpaceX’s latest earnings said the company generated $7.81 billion in quarterly revenue and outlined ambitious growth plans, including wider use of Nvidia hardware.
Labour market data offered little to unsettle traders ahead of Friday’s closely watched jobs report. Challenger, Gray & Christmas said July layoffs fell to their lowest level in two years, while the US labour department reported 199,000 initial jobless claims for the week ending August 1, broadly unchanged from the prior week. Together, the figures suggested an economy that is cooling only gradually, which may leave the Federal Reserve with limited urgency to shift its stance.
Elsewhere, safe-haven buying pushed gold to multi-week highs as geopolitical concerns lingered. Oil hovered near $80 a barrel after Iran said it had reached an agreement with Oman on a temporary shipping route through the Strait of Hormuz, though Iranian officials warned the arrangement could still be affected by outside interference. For now, traders appear to be balancing strong corporate results, uncertainty over AI valuations and a steady labour backdrop against broader geopolitical risk, with Friday’s employment data set to be the next major test.
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