Stocks Keep the Bounce Going as Nvidia and Oracle Lead the Charge

CNBC, the Wall Street Journal, Market Watch, Investor’s Business Daily, Bloomberg, and Business Insider contributed to this report.

US stocks pushed higher on Wednesday, extending Tuesday’s comeback as big tech and software names did most of the heavy lifting. The S&P 500 climbed 0.9%, the Nasdaq Composite ticked up 1.3%, and the Dow Jones Industrial Average added 287 points (about 0.6%).

At the center of the move: chip and software bets. Nvidia rose roughly 2.2% ahead of its quarterly report — due after the bell — while Oracle jumped about 3% after an upgrade that liked the stock’s post-pullback math. Together they kept traders willing to buy dips and shrug off lingering nerves about the AI trade.

Nvidia’s numbers are top-of-mind. The company reports alongside peers such as Salesforce and Snowflake, and Wall Street is watching not only for a beat but for confidence — clear signs that data-center demand isn’t petering out even as hyperscalers face heavy AI capex plans. Ulrike Hoffmann-Burchardi at UBS wrote that continued market optimism may hinge on Nvidia’s ability to guide revenue above consensus and show strong sales growth. (Short version: if Nvidia looks durable, the tape breathes easier.)

Not everyone expects fireworks — some see opportunity. Michael Rosen, CIO at Angeles Investment Advisors, warned that a little profit-taking is natural after a run; but he also said don’t count CEO Jensen Huang out. “He’s played his cards extremely well,” Rosen told clients, and that pedigree matters when the market tests assumptions about AI demand.

Software names generally kept the rally alive. The iShares Expanded Tech-Software ETF (IGV) climbed again, building on a big move from the prior session. That helped stocks like Palantir Technologies and Microsoft to add gains, even as some names showed cracks — Workday slid after a softer revenue outlook.

Why the change in tone? Traders point to a handful of things. First, the market appears to be moving from indiscriminate enthusiasm for anything tagged “AI” toward a more selective approach: investors want proof of durable revenue and margins, not just hype. Second, product news — like Anthropic’s recent connectors for enterprise tools — gave software stocks a bit of a relief bounce, suggesting AI features might be additive to existing apps rather than replace them outright. And third, with some mega-cap names checked and beaten down, bargain hunters and analysts are willing to call a floor in parts of the sector.

Still, breadth was a reminder not everything is rosy. More NYSE names fell than rose on Wednesday, signaling the index gains were concentrated. On the other hand, pockets of the market showed life: Axon ripped higher after strong software growth; and chatter about takeover interest lifted PayPal in recent sessions. Bank of America even flagged fresh catalysts for Robinhood after its S&P inclusion.

Outside earnings, macro and geopolitical headlines kept traders busy. Tensions overseas and the administration’s tariff talk have been background noise; the president’s State of the Union also drew attention, though markets stuck to company news for near-term moves.

And then there’s the narrative around the “AI panic.” For weeks some investors treated any AI-related hiccup as a sell signal; now, a number of pros say that panic has calmed a bit. Tom Lee at Fundstrat and other strategists see signs of a bottom in software after extreme volumes and forced selling. But caution remains: heavy trading volumes during severe drawdowns can mark either capitulation or the start of a fresh leg down — context matters.

What should traders watch next? Nvidia’s guidance, clearly. If the chipmaker posts the kind of durable data-center demand investors want to see, it could steady the tape. If management warns of slower spend or sharper margin pressure from memory costs, the recent optimism could cool fast. Earnings from the likes of Salesforce and Snowflake will also influence whether tech’s rally widens beyond a handful of names.

Wednesday’s session felt like a sequel to Tuesday — not a full reset. Stocks in pockets rallied hard, and Nvidia and Oracle were the marquee acts. But underneath, the market is still sorting winners from pretenders, and a handful of big reports over the next few days will tell traders whether this bounce has legs or is just another pause in a volatile stretch.