On the 27th, all three major U.S. stock indexes in New York rose in tandem to close higher. Nvidia, considered the flagship AI chip stock, issued an outlook that far exceeded market expectations, spreading strong buying across technology shares.
On the New York Stock Exchange, the Dow Jones Industrial Average finished up 104.67 points, or 0.20%, at 53,568.55 from the prior session. The large-cap-focused Standard & Poor's 500 index rose 55.17 points, or 0.72%, to 7,730.87. The tech-heavy Nasdaq composite jumped 411.15 points, or 1.57%, to close at 26,541.35.
Nvidia shares surged 8.74% in a single day. Nvidia projected that revenue growth in fiscal year 2028 will reach 70%. That is an enormous figure more than 20 percentage points above Wall Street's initial expectation of 44%. It is interpreted to mean that as the AI market for processing vast amounts of data expands, demand is exploding for graphics processing units, which serve as the core brain.
A business expansion plan unveiled by Nvidia CEO Jensen Huang right after the prior close also excited investors. Nvidia is extending its grip beyond graphics processing units into the traditional central processing unit market. He said the company agreed with Amazon Web Services, the world's largest cloud service company, to supply the next-generation central processing unit Vera and millions of graphics processing units. On top of that, news that it will acquire the open-source platform company Hugging Face, favored by AI developers, with an investment of about $13 billion helped drive the stock higher.
Other major technology corporations also posted strong results, adding to the index gains. Semiconductor corporation Broadcom rose 3%, and Intel and SK hynix gained 3% and 1%, respectively.
Notably, strength stood out not only in AI-related stocks but also among software and cybersecurity corporations. The management software corporation Salesforce, Inc. reaped massive revenue from an equity investment in AI startup Anthropic, sending its shares up more than 12%. Security firms CrowdStrike and Okta also posted surprise results, with shares jumping 20% and 19%, respectively. Experts said demand has exploded for autonomous artificial intelligence that can make decisions without human assistance and block hacking threats.
Among Wall Street experts, the consensus is that the AI bubble debate has faded over this earnings season. Carson Group strategist Ryan Detrick said it is too early to call an end to the AI boom and that demand continues to grow. UBS Global Wealth Management executive Mark Haefele likewise said the fundamental strength and revenue-generating capacity shown by big-tech corporations are very solid.
Analyst Melissa Brown noted that the correlation between tech and non-tech stocks is gradually declining. This appears to mean that even if certain stocks swing sharply, the overall market does not wobble, keeping overall volatility low.
Investor attention is now turning to the economic policy symposium being held in the resort town of Jackson Hole, Wyoming, known as the Jackson Hole meeting. The Jackson Hole meeting is where global Central Bank governors gather to discuss the direction of future economic policy. Investors are on edge to see what signal Federal Reserve Chair Kevin Warsh will send about whether to cut rates going forward.
Torsten Slok, an economist at Apollo Global Management, told Bloomberg that "Chair Warsh is likely to deliver hawkish remarks to prevent long-term Government Bonds yields from rising excessively." Hawkish remarks refer to a stance that favors monetary tightening policies, such as raising interest rates or tightening the money supply, to rein in inflation.
In fact, senior Fed officials have been emphasizing the need for tightening day after day. Cleveland Federal Reserve Bank President Beth Hammack said, "U.S. inflation remains at 3%, above the target," adding, "It is time to act right now." Kansas City Federal Reserve Bank President Jeff Schmid likewise expressed caution, saying, "Inflation is not easing easily and is sticking stubbornly." By contrast, Boston Federal Reserve Bank President Susan Collins noted, "The current rate level is slightly constraining the economy."
Meanwhile, employment data released by the U.S. Department of Labor eased the Fed's concerns. New unemployment insurance claims in the U.S. last week totaled 203,000. That is lower than market experts' expectation of 208,000. It means fewer Americans than expected are losing jobs and filing for unemployment benefits, underscoring that the U.S. job market remains solid.
Meanwhile, international oil prices fell on signs of easing geopolitical tensions. Brent crude futures for October delivery fell to $87.29 per barrel, and West Texas Intermediate also declined to $81.77 per barrel. As reports emerged that Iran and Oman are conducting detailed talks over control of the Strait of Hormuz, concerns eased that oil supplies could be cut off.
But the embers of conflict have not been fully extinguished. The Wall Street Journal (WSJ) reported that President Donald Trump notified mediators that he has no intention of returning to the memorandum of understanding framework reached with Iran in June. There are also growing concerns that the United States could reignite widespread trade conflicts. Politico reported that President Donald Trump is seriously considering a plan to vastly expand tariff targets to an entire range of products containing semiconductor chips, such as laptops and data center servers.