Dow Hits Record High as Nvidia Rally Cools and Quantum Stocks Surge

US stock indexes closed mostly higher on Thursday, although gains were limited as investors cautiously assessed Nvidia’s blockbuster earnings report and the broader outlook for artificial intelligence stocks.

The Dow Jones Industrial Average delivered the strongest performance of the session, rising around 0.6%, or nearly 275 points, to close at a fresh all-time high, surpassing the previous record set in February. Meanwhile, the S&P 500 gained 0.2%, while the tech-heavy Nasdaq Composite edged up just 0.1%.

Markets entered the session with strong momentum after Wednesday’s rally ahead of NVIDIA earnings, but investor enthusiasm cooled slightly after the chipmaker’s stock fell roughly 2% despite delivering results that exceeded Wall Street expectations.

Nvidia reported strong quarterly earnings, upbeat revenue guidance, and continued explosive growth in AI-related demand, particularly across data centers and advanced semiconductor infrastructure. However, the muted stock reaction suggested investors may already have priced in much of the anticipated growth tied to the global AI boom.

The results reinforced confidence in the long-term outlook for artificial intelligence, although traders appeared increasingly sensitive to valuation concerns after the sector’s enormous rally over the past year.

Bond markets offered some support to equities, with the yield on the benchmark 10-year US Treasury note easing to 4.57% after touching 4.69% earlier this week — its highest level since January 2025. Lower yields tend to benefit growth and technology stocks by reducing pressure on future earnings valuations.

Oil prices experienced sharp intraday volatility amid ongoing geopolitical uncertainty involving Iran. Reports that Tehran remains committed to retaining enriched uranium briefly reignited fears surrounding Middle East tensions and global energy supplies.

However, crude later reversed lower as optimism surrounding a possible diplomatic breakthrough resurfaced. West Texas Intermediate crude fell 0.9% to settle near $97.40 per barrel, while Brent crude declined 2.3% to close around $102.58.

One of the strongest themes of the session emerged in quantum computing stocks after the US government announced significant funding support under the CHIPS and Science Act.

IBM surged nearly 12% after revealing it had secured $1 billion in funding to build a factory focused on quantum computing chips. Meanwhile, D-Wave Quantum soared more than 30%, while Rigetti Computing jumped over 25%.

Elsewhere, some major stocks faced heavy selling pressure. Walmart fell 7%, while Intuit plunged 20% after announcing plans to cut 17% of its workforce as part of a major restructuring effort.

IPO speculation also attracted major investor attention. Reports indicated that SpaceX had submitted paperwork for a potential Nasdaq listing under the ticker “SPCX” in what could become the largest IPO in financial market history.

At the same time, reports suggested OpenAI may confidentially file for an IPO in the coming days. The news boosted shares of SoftBank Group by roughly 20% in Tokyo trading due to its significant investment exposure to OpenAI.

In other markets, gold edged slightly higher to $4,540 per ounce, Bitcoin traded relatively flat near $77,600, and the US Dollar Index climbed to 99.18.

Market Outlook

Markets are expected to remain highly focused on artificial intelligence and technology stocks in the coming sessions as investors continue digesting Nvidia’s earnings and reassessing valuation levels across the sector.

While strong AI demand continues supporting long-term bullish sentiment, the weaker reaction in Nvidia shares may signal growing investor caution toward heavily priced growth stocks.

Geopolitical developments involving Iran will also remain a major driver for oil prices, Treasury yields, and broader market risk appetite. Any escalation in tensions or disruption to energy markets could quickly revive volatility across global assets.

Investors will additionally monitor Federal Reserve commentary and inflation expectations closely, particularly as energy prices and bond yields continue influencing expectations for future US interest-rate policy.