Nvidia Jumps 8.74%, Lifting Nasdaq 1.57% as Tech Shares Rally

U.S. stocks climbed on August 27, led by technology shares after Nvidia’s strong earnings revived expectations for spending on artificial intelligence. Buying spread across semiconductor and software stocks as optimism over AI investment returned.

The Dow Jones Industrial Average rose 0.20% to 53,569.44. The S&P 500 gained 0.72% to 7,730.99, while the Nasdaq Composite jumped 1.57% to 26,541.35.

Nvidia was the main force behind the advance. The stock surged 8.74% after the company reported earnings above market expectations and issued a stronger revenue outlook. The move reflected expectations that spending on AI infrastructure will remain high.

Semiconductor shares also climbed. The Philadelphia Semiconductor Index rose 2.33%, while Broadcom and Intel gained 4.49% and 4.36%, respectively. SK Hynix American depositary receipts added 2.27%.

Strong earnings expectations also lifted software and cybersecurity stocks. Salesforce jumped more than 22% after raising its full-year outlook, while CrowdStrike rallied 20.5% on upbeat results and a higher revenue forecast. ServiceNow and Palo Alto Networks also posted double-digit gains.

Moderna, by contrast, fell 4.6% after unveiling plans to issue $2 billion of convertible bonds. HP also slipped about 3% as weakness in its PC business weighed on the stock.

The market’s next focus is Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on August 28. Investors are watching for signals on the future path of interest rates as they assess inflation trends and moves in long-term Treasury yields.

Oil prices rebounded as hopes for negotiations between the United States and Iran faded. October West Texas Intermediate crude rose 1.58%, while October Brent crude gained 2.12%.