Technology stocks powered markets higher Thursday as artificial intelligence optimism returned to Wall Street. The Nasdaq led major indices with a 1.3% gain to close at 19,200, while the S&P 500 added 0.8% and the Dow rose 0.4%. NVIDIA surged 4.7% on reports of accelerating AI server deployments, helping lift the broader semiconductor sector.
Energy and financial sectors also contributed to the broad-based rally, with oil prices steady around $78.50 supporting energy names. The VIX fell to 18.5, suggesting reduced market anxiety as investors digested better-than-expected economic data earlier this week. Growth stocks outperformed value names as rate cut expectations for later this year remained intact.
On the downside, healthcare stocks lagged after Johnson & Johnson's disappointing quarterly results weighed on the sector. The pharmaceutical giant dropped 2.1% after cutting its revenue guidance, raising concerns about drug pricing pressures across the industry. Consumer staples also underperformed as defensive sectors rotated out of favor.
Gold held steady at $2,385 as the dollar remained relatively flat. Trading volumes picked up from recent sessions, suggesting renewed investor confidence in risk assets heading into earnings season.