(Updates with closing prices, Nvidia results)Indexes up: Dow 0.63%, S&amp;P 500 0.81%, Nasdaq 1.26%Axon surges after Q4 results beatLowe’s dips on weak revenue forecasts, dragging housing stocks downGoDaddy tumbles after guiding annual revenue below estimatesNvidia shares rise in extended trading after posting Q4 resultsBy Stephen Culp and Shashwat ChauhanNEW YORK, Feb 25 (Reuters) - Wall Street ended higher on Wednesday, extending its tech-led rally and touching two-week highs as worries over artificial intelligence disruption and costs took a back seat to renewed optimism over the nascent technology’s potential benefits.All three major U.S. stock indexes advanced, with the Nasdaq, powered by chips, enjoying the largest percentage gain as markets near the end of a tumultuous month that was marked by concerns over massive investment in AI infrastructure and the extent to which it could disrupt myriad industries.Nvidia, at the forefront of the AI revolution, reported fourth-quarter revenue of $68.13 billion, beating analyst estimates. Its shares were up about 3% in extended trading.The Philadelphia SE Semiconductor index (.SOX) gained 1.6% ahead of Nvidia’s (NVDA.O) earnings.The S&amp;P Software &amp; Services index (.SPLRCIS) , bouncing back from its 23% year-to-date slump, was a clear outperformer, jumping 2.9%.“We’re in the middle of a push-pull here between some negative sentiment and some extreme price action in parts of the market,” said Zach Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina.“I think the (AI) disruption concerns are more acute right now than worries over return on investment,” Hill added. “Investors are trying to grapple with what could potentially be existential risk, and that’s a bigger deal than not receiving as much payout as you would like.” Richmond Fed President Tom Barkin chimed in on the issue, saying it is not clear that the AI rollout will displace workers, adding the technology could enable workers and help the job market become more efficient.The Dow Jones Industrial Average (.DJI) rose 307.65 points, or 0.63%, to 49,482.15, the S&amp;P 500 (.SPX) gained 56.06 points, or 0.81%, to 6,946.13 and the Nasdaq Composite (.IXIC) gained 288.40 points, or 1.26%, to 23,152.08.Among the 11 major sectors in the S&amp;P 500, tech stocks (.SPLRCT) led the percentage gainers, while industrials (.SPLRCI) suffered the steepest loss. Axon Enterprise (AXON.O) jumped 17.6% after the Taser-maker beat fourth-quarter profit estimates. Both First Solar (FSLR.O) and Lowe’s Companies (LOW.N) provided weaker-than-expected annual sales guidance, sending their shares down 13.6% and 5.6%, respectively.After Lowe’s disappointing report, housing (.HGX) and homebuilders (.SPCOMHOME) were clear underperformers, down 3% and 3.7% respectively, despite the 30-year fixed mortgage contract rate dipping to a 3-1⁄2-year low last week, according to the Mortgage Bankers Association. On the staples side, alcohol producers with Brown-Forman (BFb.N) off 7.6% and Molson Coors (TAP.N) down 4.8%, after London-listed Johnnie Walker and Guinness maker Diageo (DGE.L) projected a 2% to 3% organic sales decline in 2026 and cut its interim dividend in half. GoDaddy (GDDY.N) tumbled 14.3% after the internet services provider forecast annual revenue below Wall Street expectations.Considering recent volatility in software stocks, results from Salesforce (CRM.N) , Intuit (INTU.O) and Snowflake (SNOW.N) will likely be subject to added scrutiny.Advancing issues outnumbered decliners by a 1.78-to-1 ratio on the NYSE. There were 635 new highs and 98 new lows on the NYSE.On the Nasdaq, 3,148 stocks rose and 1,557 fell as advancing issues outnumbered decliners by a 2.02-to-1 ratio.The S&amp;P 500 posted 50 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 127 new highs and 94 new lows.Volume on U.S. exchanges was 17.50 billion shares, compared with the 20.27 billion average for the full session over the last 20 trading days.S&amp;P 500 poised to gain 10% by year-end, but trade, AI disruption concerns persist Chips software and broader market YTD<img src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/USA-STOCKS/znvnmdrgopl/softwarechips.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="650" height="400" original-src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/USA-STOCKS/znvnmdrgopl/softwarechips.png"/>

AXON

Wall Street closed higher, driven by a tech rally, with the Nasdaq gaining 1.26%. Nvidia reported Q4 revenue of $68.13 billion, exceeding estimates, boosting its shares by 3%. Despite concerns over AI disruption, optimism about its benefits prevailed. Axon surged 17.6% after beating profit estimates, while Lowe’s and GoDaddy faced declines due to weak forecasts. The S&P 500 and Dow also saw gains, with advancing issues outnumbering decliners. Overall, the market is navigating volatility amid AI and trade concerns, with expectations of a 10% gain by year-end.

- Wall Street finished higher, with the Dow up 0.63%, S&P 500 gaining 0.81%, and Nasdaq increasing by 1.26%, led by strong performances in tech stocks, particularly Nvidia, which reported Q4 revenue of $68.13 billion.  
- Despite concerns over AI disruption, optimism grew over its potential benefits, as reflected in improved stock performance across major indexes and sectors.  
- Housing stocks fell following Lowe’s weak revenue forecasts, while companies like GoDaddy and Brown-Forman also faced declines due to disappointing earnings guidance and sales projections.

Reuters

Axon Enterprise

NASDAQ Composite Index

NVIDIA

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SPDR S&P Semicon

First Trust NASDAQ-100 Equal Weighted

Direxion Daily NVDA Bull 2X Shares

T-Rex 2X Long NVIDIA Daily Target ETF

iShares Core S&P 500

Spdr Select Tech

Franklin Intelligent Machines ETF

SPDR S&P 500

iShares Expanded Tech Software Sector ETF

Proshares UltraPro QQQ

GraniteShares 2x Short NVDA Daily ETF

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Global X Cloud Computing ETF

Direxion Semicon Bull 3X

SPDR Djia

AXS 1.5X NVDA Bear Daily ETF

VG S&P 500

SPDR S&P Software

Guggenheim DJIA Ave Div

GraniteShares 2x Long NVDA Daily ETF

ISHRS S&P Glb It

iShares Semiconductor ETF

Ark Innovation ETF

iShares Future AI & Tech ETF

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US STOCKS-Wall Street extends tech-powered rally as AI worries abate; Nvidia reports