US stocks closed higher with the S&P 500 and Dow Jones closing at record highs, despite Nvidia's quarterly report falling short of investors' high expectations.
Nvidia shares fell 0.8% after US-China trade tensions forced the artificial intelligence (AI) chipmaker to exclude potential China sales from its quarterly outlook.
However, investors saw Nvidia's 56% jump in quarterly revenue as evidence that demand for AI technology remains strong, fueling a rally in AI stocks and sending Wall Street to record highs.
The S&P 500 rose 0.32% to 6,501.86 points, the Dow Jones added 0.16% to 45,636.90 points, while the tech-focused Nasdaq rose 0.53% to 21,705.16 points.
In other news, weekly jobless claims fell below expectations, while a separate report showed corporate profits rebounded in the second quarter.
Investors are now awaiting the Personal Consumption Expenditures (PCE) Price Index on Friday, at 8:30 pm Malaysia time (MYT), with any signs of rising inflation risking undermining expectations for a Federal Reserve (Fed) easing in September.
Meanwhile, Fed Governor Lisa Cook has filed a lawsuit challenging President Donald Trump's attempt to oust her earlier this week over allegations of mortgage fraud.
In addition, data analytics company Snowflake's shares jumped 20% after raising its fiscal 2026 revenue forecast, driven by AI demand.
HP Inc's shares rose 4.6% after beating quarterly revenue estimates, supported by strong demand for AI-powered personal computers.
Trading volume on US exchanges was $13.8 billion, compared to an average of $16.7 billion over the full 20 trading days.
