Technology stocks led Wall Street higher on Thursday, driven by a blockbuster outlook from Nvidia Corp. The chipmaker's nearly 9% surge, its biggest since April 2025, added $442 billion to its market value after it forecast about 70% revenue growth for the next fiscal year. Salesforce Inc. also jumped 22.6% on strong earnings and demand for its AI products, while CrowdStrike Holdings Inc. contributed to the software sector's gains. The Nasdaq 100 rose 1.4%, and the S&P 500 gained 0.7%, even as most of its shares fell, demonstrating the tech sector's outsized influence. This rally helped to alleviate some concerns about the sustainability of AI spending, with analysts like Mark Haefele at UBS Global Wealth Management noting robust fundamentals in the second-quarter earnings season. Matt Miskin of Manulife John Hancock Investments described Nvidia's report as "the icing on the cake of one of the best earnings seasons in corporate American history."
Investors are also closely watching for Federal Reserve Chair Kevin Warsh's speech on Friday at the Economic Policy Symposium in Jackson Hole, Wyoming. Treasury yields remained elevated due to persistent inflation and fiscal deficit concerns, putting pressure on Warsh to provide clearer guidance on the Fed's monetary policy. However, analysts like Elias Haddad at Brown Brothers Harriman & Co. expect a lack of direct policy signals, anticipating instead that Warsh might preview findings from Fed task forces on various economic aspects. Torsten Slok of Apollo Global Management suggested Warsh's economic outlook would likely have a "hawkish flavor" to help keep long-term yields in check. The 10-year U.S. Treasury yield rose 1.22 basis points to 4.676%, while the 30-year bond yield increased 0.91 basis points to 5.1941%.
Other market movers included Best Buy Co. which fell despite an increased outlook, as investors sought stronger signs of recovery. Dollar Tree Inc. largely met expectations, while Dollar General Corp. lifted its annual revenue forecast after beating sales estimates. Moderna Inc. announced plans to raise $2 billion through note sales to fund its cancer vaccine business and repay debt. Wendy's Co. sank following reports that Nelson Peltz's Trian Fund Management had no plans to take the fast-food chain private. The Dow Jones Industrial Average rose 0.2%.
The dollar remained largely unchanged as traders focused on Warsh's upcoming speech for clues on interest rate policy, especially after Labor Department data showed weekly initial jobless claims fell for a second consecutive week, indicating a solid job market. While Warsh is known for his reluctance to provide forward guidance, investors will be scrutinizing his remarks for any subtle indications of the Fed's future actions regarding interest rates to control inflation. Futures markets are currently pricing in a one-quarter point hike by the end of the year, with a roughly one-third chance of a September increase.
