Nvidia's shares rise
The shares of Nvidia climbed 2.6% after the company said that it had signed a multi-year agreement with Meta Platforms. Under the deal, Nvidia will supply millions of its current and future AI chips to support Meta’s infrastructure plans. The announcement gave confidence to investors who had been worried about high spending on AI projects. In recent weeks, markets had seen pressure as investors asked whether heavy AI investments were leading to real growth in revenue and profits. Nvidia’s update helped ease some of those concerns. Other large technology companies also moved higher. Amazon rose 2.3%, and Alphabet and Microsoft gained about 1% each.
Major indexes rise, too
The gains in technology shares lifted key indexes. The Dow Jones Industrial Average rose 280.48 points, or 0.56%, and it closed at 49,813.67. The S&P 500 gained 58.89 points, or 0.86%, and ended at 6,902.11. The Nasdaq Composite climbed 294.79 points, or 1.31%, to finish at 22,873.17. The Nasdaq, which has a large share of technology stocks, outperformed the other indexes. Markets had started 2026 on a weak note, especially in the technology sector. Many investors were cautious about high valuations and rising AI spending. Wednesday’s rally suggests that confidence may be returning, at least for now.
Healthcare sector
In the healthcare sector, Moderna jumped 7.7%. The company said the US Food and Drug Administration will review its seasonal influenza vaccine. This came after an earlier decision had raised doubts about the review process. The update improved investor sentiment toward the biotech company and added strength to the broader market.
