U.S. Stocks rise as tech stocks rise in anticipation of Nvidia earnings.

On February 24, 2026, the major indexes of U.S. stock markets rose as investors recovered from earlier volatility and refocused on the highly anticipated earnings report from Nvidia, which was scheduled to be released after the market closed. After a sell-off earlier in the week, broad gains across the "S&P 500," "Nasdaq Composite," and "Dow Jones Industrial Average" indicated renewed confidence in technology stocks and lessened concerns about the disruption caused by artificial intelligence (AI).

U.S. equities bounced back strongly Tuesday, erasing losses from the beginning of the week when investors were rattled by fears that rapid AI developments could disrupt broad sectors of the market. As optimism returned, the Dow, the Nasdaq Composite, and the S&P 500 all posted solid gains of between 0.7% and 0.8%. Investors were encouraged by a significant new chip supply deal between Advanced Micro Devices and Meta Platforms, which eased some concerns about AI's broader impact and signaled sustained demand for AI hardware from key players. This move back into technology and software stocks was the primary driver of the rebound.

As investors shifted their attention from downside risks to earnings potential, technology stocks once more led market gains. Gains in enterprise software companies contributed to the overall market's rise, so software firms in particular played a significant role. After a brief sell-off earlier in the week caused by concerns that AI could threaten revenue streams in certain industries, this buying wave followed. After its AI chip deal with Meta, AMD saw an impressive rise among individual stocks, and smaller technology names also saw rises.

Fresh enthusiasm for AI implementations provided a counterweight to fears of disruption, according to analyst commentary, which suggested that some of the earlier selling may have been overdone. Indexes remain below recent highs despite the rally, indicating lingering uncertainty regarding valuations and how markets will process future earnings results. The Nasdaq's Tuesday rebound of more than 1 percent was significant, but it came after significant declines in previous sessions, highlighting the choppy conditions investors are navigating.

Nvidia's quarterly earnings report, due after the market closes on February 25, 2026, is the primary focus of investors. Analysts anticipate significant increases in both revenue and earnings year-over-year for the AI-driven growth story of the company. Estimates suggest revenue could exceed $65 billion, marking robust growth driven by demand for AI chips in data centers and hyperscale applications.

Due to its dominant position in GPU technology and central role in powering machine learning workloads for major cloud providers and enterprise customers, investors view Nvidia as a benchmark for the entire AI industry. The tech market as a whole may experience an uptick in sentiment if earnings beat expectations. However, there are significant risks. Even a slight miss or cautious forward guidance could cause volatility due to the stock's already priced-in positive outlook and high expectations.

In addition to the headline numbers, market participants are keeping an eye on management's comments regarding demand trends, supply chain conditions, and potential product ramps. The market's upside was also supported by other industries besides technology. Some industrial and consumer stocks climbed on fresh corporate news and earnings beats, while other areas such as energy and financials displayed mixed performance. Despite the rally on Tuesday, broader economic and policy concerns — including tariff impacts and inflation data — continue to shape investor expectations for the weeks ahead.

Investors were also taking in political developments, such as President Donald Trump's State of the Union address, which touched on economic policy and trade rhetoric, when they looked at sentiment more broadly. These factors influence risk appetite, particularly in industries that are affected by global economic conditions. As markets head into the Nvidia earnings event, traders are positioning for potential volatility.

Nvidia's performance can have a significant impact on the direction of the market as a whole because of its dominant position in major indices and the fact that it frequently represents a sizeable portion of the S&P 500's tech exposure. A strong report could boost investors' faith in the tech-driven rally, while poor guidance could rekindle investor apprehension.

For the time being, Tuesday's rebound suggests that investors are willing to look past concerns regarding the immediate future and concentrate on the narrative of AI adoption and innovation over the long term. However, markets continue to pay attention to corporate results as well as macroeconomic signals that could sway sentiment in the coming days, despite the fact that earnings season has just begun and economic data continues to evolve.