Nvidia Earnings Drive Market Rally Amid AI Optimism
Stocks rose on August 27, with the S&P 500 up by +0.39%, the Nasdaq 100 gaining +0.84%, and tech stocks leading due to strong earnings from Nvidia. The chipmaker reported a revenue growth forecast for fiscal 2028 that exceeded expectations and climbed over 6%. A $31 billion joint venture between Sandisk and Kioxia also contributed positively, as did better-than-expected results from cybersecurity firms Okta and CrowdStrike. The US labor market showed strength with initial unemployment claims falling to 203,000—below expectations—which supports economic growth. However, Kansas City Fed President Jeff Schmid warned that current monetary policy remains accommodative despite inflation staying above the central bank’s target of 2%. Meanwhile, oil prices rose on concerns over potential disruptions in Russian crude output due to escalating tensions in Ukraine. The S&P 500 is expected to report Q2 earnings growth near +32%, with AI infrastructure stocks contributing nearly 60% of that increase. So far, 86% of the companies reporting have beaten estimates.
Topics: AI Infrastructure Nvidia Stock Market Rally Technology Sector