The U.S. stock market is rallying toward one of its best days since the summer after it seemed to pass a couple of crucial tests. The S&P 500 shot up by 1.8% Thursday after a blockbuster profit report from Nvidia suggested AI superstar stocks can keep rising and mixed data on the U.

Nvidia reported quarterly results that handily topped Wall Street expectations, sending the stock sharply higher in after-hours trading.

Nvidia has grown to become the largest stock on Wall Street and briefly topped $5 trillion in value. That means its stock movements carry more weight on the S&P 500 than any other stock, and it can single-handedly steer the index’s direction some days.

U.S. stocks ended a choppy session higher on Wednesday, bouncing off recent losses as technology stocks rose ahead of Nvidia's quarterly results.

The releases will provide key signals for investors after a significant market pullback.

Chip giant Nvidia beat Wall Street's expectations for revenue and upcoming sales, easing investor concerns about heavy artificial intelligence (AI) spending that have unsettled markets. In its quarterly earnings report on Wednesday,