Stocks were mixed on Thursday as outsized gains from Nvidia (NVDA) catapulted a tech rally while debt ceiling concerns continued to hang over markets.

The S&P 500 (^GSPC) rose 0.88%, while the Dow Jones Industrial Average (^DJI) closed down 0.11%. The technology-heavy Nasdaq Composite (^IXIC) rallied 1.71%.

Shares of Nvidia soared Thursday, rising roughly 24.37% as the tech giant's second quarter guidance shocked Wall Street to the upside. Nvidia, which has quickly become a leader in the growing artificial intelligence arms race, projected second quarter revenue of $11 billion. Analysts had expected $7.2 billion, per Bloomberg data.

Other AI-related stocks jumped with Nvidia as Alphabet (GOOGL) gained more than 2% and Microsoft (MSFT) popped nearly 4%.

"In 22 years of covering tech stocks and large cap we have never seen a guidance range of this magnitude on a large cap tech name," Wedbush managing director Dan Ives wrote in a note on Thursday. "And thus speaks to our thesis that the monetization of AI for stalwarts like Microsoft, Alphabet, Amazon, Oracle, Meta, Apple, and Salesforce is well underway."

Meanwhile, uncertainty around the debt ceiling is weighing on the broader market. On Wednesday night Fitch warned it might downgrade the United States' AAA credit.

"Fitch still expects a resolution to the debt limit before the X-date," Fitch wrote in the statement. "However, we believe risks have risen that the debt limit will not be raised or suspended before the X-date and consequently that the government could begin to miss payments on some of its obligations."

In other earnings news, shares of Snowflake (SNOW) fell sank 16.49% as the cloud computing company provided weaker-than-expected second quarter revenue.

Best Buy (BBY) stock popped just more than 3% as the company reported earnings per share of $1.15. Wall Street had been expecting $1.11. The tech retailer missed the Street's revenue estimates, though, with same-store sales tumbling 10% in the quarter.

On the economic front, jobless claims for the week ending May 20 came in lower than expected, with 229,000 claims filed. Economists had expected 245,000. A secondary reading for quarterly GDP showed the U.S. economy grew 1.3% in the first quarter. The initial print indicated 1.1% growth.

Josh is a reporter for Yahoo Finance.

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