Nvidia Rally Powers Tech Stocks Higher as Nasdaq Jumps 1.57%

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

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 led the rally, surging 8.74% after reporting earnings that beat market expectations and issuing a stronger revenue outlook. The move reflected expectations that spending on AI infrastructure will remain high.

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

Strong earnings expectations also lifted software and cybersecurity shares. Salesforce rose more than 22% after raising its full-year outlook, while CrowdStrike jumped 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 slipped about 3% as weakness in its PC business weighed on the stock.

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

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