US Stocks Rally, Led by Nvidia, Despite Alphabet’s Earnings and AMD Stumbles

US stocks recovered from losses on Wednesday to close higher, fueled by a surge in Nvidia shares, even as Alphabet and AMD faced headwinds.  

The tech-heavy Nasdaq Composite rose 0.2%, while the benchmark S&P 500 added 0.4%. The Dow Jones Industrial Average led the gains, rising 0.7%, or more than 300 points.  

Alphabet’s stock fell nearly 7% after fourth-quarter cloud revenue fell short of estimates. The miss rattled investors concerned that the Google parent’s heavy spending on AI might not pay off as quickly as hoped.  
Nvidia, however, appeared to be a potential beneficiary of that spending. Its shares jumped more than 5%, helping to lead the major indexes back from negative territory.  

Meanwhile, the 10-year Treasury yield fell nine basis points to 4.42%, its lowest level since December 2024.

AMD’s earnings added to the mixed sentiment surrounding the AI trade. While the chipmaker beat quarterly revenue estimates, a disappointing data-center sales forecast raised concerns about a loss of AI momentum. AMD shares tumbled over 6%.  

Big Tech names like Alphabet are also being affected by the tariff tensions between the US and China, which Wall Street sees as a risk for tech and chip companies. Apple shares dropped about 2% before recovering after a Bloomberg report that Beijing is considering an antitrust probe into its app store.

President Trump’s tariff plans have already made markets nervous, and his unexpected suggestion late Tuesday that the US could take over the Gaza Strip and develop it as a “Riviera of the Middle East” left investors even more uncertain about the direction of policy.