LIVE Markets-Nvidia lifts Nasdaq, but market breadth tells a different story

Here is a snapshot of where markets stood shortly after 4 p.m. ET:

(Terence Gabriel)

The Nasdaq .IXIC led Wall Street higher on Thursday as Nvidia's blockbuster results reinforced confidence in the AI trade and sparked another rally in technology stocks.

Nvidia NVDA.O soared nearly 9% after the chipmaker's strong forecast cleared a high bar set by investors, reinforcing the view that the AI-driven spending boom remains intact and that its biggest beneficiaries continue to see strong growth.

All three major U.S. indexes ended higher, with the Nasdaq gaining 1.57% and outperforming its peers. The advance, however, masked weakness across much of the broader market, with 10 of the 11 S&P 500 .SPX sectors finishing the day in negative territory.

Technology .SPLRCT jumped more than 3% and was the sole gainer. Consumer staples .SPLRCS, healthcare .SPXHC, and consumer discretionary .SPLRCD all lost 1% or more and were the day's weakest performers.

Under the surface, chipmakers .SOX and software & services .SPLRCIS posted strong gains. Big banks .SPXBK and transports .DJT were among the laggards.

With Nvidia earnings now behind investors, attention shifts to Federal Reserve Chair Kevin Warsh's first Jackson Hole address on Friday. Markets will be listening closely for any signals on how policymakers are assessing recent inflation readings and the Treasury's efforts to keep longer-term yields in check.

Adding a note of caution on Thursday was fresh commentary from several Fed officials, who reiterated concerns about inflation and maintained a hawkish tone on the need to contain price pressures.