S&P 500 Eyes Record High After NVIDIA Earnings Calm AI Fears

The S&P 500 index gained 0.8% on Wednesday, closing just 0.8% below its record high. The Nasdaq Composite jumped 1.3%, and the Dow Jones Industrial Average added over 300 points, showing that dip buyers remain active despite AI overvaluation concerns. The index has hovered near historic highs, with a broader uptrend intact, signaling confidence from investors in the face of recent volatility.

AI-related stocks had suffered a dip in recent weeks, with concerns about AI tools disrupting traditional business models and potential overinvestment. However, NVIDIA’s latest earnings report alleviated some of these fears, as the company exceeded revenue and profit expectations, driven by robust demand for data center infrastructure. This reassured the market that AI infrastructure spending remains strong and not speculative.

On the technical front, the S&P 500 remains in a consolidation phase just below its recent swing high at 7,017. The index is currently sitting around short-term moving averages, with immediate resistance between 7,000–7,020.

Explore the technical levels, earnings reports, and market dynamics behind the S&P 500's rebound and what’s next for its breakout.