Friday 28th of August
🌍The market Story
US stocks rallied on Thursday after Nvidia’s strong results reignited confidence in the AI trade.
The S&P 500 rose 0.7%, the Nasdaq jumped 1.6%, and the Dow gained 0.2%. Nvidia surged 8.7%, while Salesforce and CrowdStrike also jumped after strong results.
But the rally was very narrow — technology was the only S&P 500 sector to finish higher. That matters because it shows the market is still relying heavily on a small group of growth stocks.
At the same time, oil remains below $90 and bond yields are relatively steady, which helps. The main focus now is Fed Chair Kevin Warsh’s Jackson Hole speech.
📊 Market Snapshot
US Markets:
Index | Close | Daily Move |
|---|---|---|
S&P 500 | 7,730.99 | +0.72% |
Nasdaq | 26,541.35 | +1.57% |
Dow Jones | 53,569.44 | +0.20% |
Russell 2000 | 3,014.34 | +0.28% |
Market Takeaway: Stocks finished higher, but the rally was heavily concentrated in technology, with Nvidia and software stocks doing most of the lifting.
Key Markets:
Gold: $4,579 Per Ounce
Gold is slightly lower this morning after a very strong August.
Oil: $89.33 Per barrel
Oil is back below $90 after falling more than 5% over the week.
Bitcoin: $79,915.87
Still near recent highs and on track for roughly a 30% gain in August.
Dollar: The dollar is near a one-week high as markets wait for Kevin Warsh’s Jackson Hole speech.
🔎 Why Markets Moved
1. Nvidia reignited the AI trade
Nvidia jumped 8.7% after delivering stronger-than-expected results and a very bullish long-term outlook.
Why markets cared:
Nvidia is one of the biggest companies in the market, so a move that large has a major impact on the S&P 500 and Nasdaq. Its results also reassured investors that AI spending is still growing strongly.
2. Software stocks joined the rally
Salesforce surged 22.6% and CrowdStrike rose 20.5% after strong results and better guidance.
Why markets cared:
That showed the AI story is not just helping chipmakers, software and cybersecurity companies are also finding ways to benefit from it.
3. Oil eased, but yields stayed high
Brent remained below $90, which helped reduce some inflation pressure, but long-term Treasury yields were still elevated.
Why markets cared:
Lower oil is good for consumers and inflation, but high yields keep borrowing costs expensive and limit how much support the wider market gets.
Biggest Winners 📈 & Biggest Losers 📉
Winners -
📈 Nvidia: +8.7%
Nvidia rallied after stronger-than-expected earnings and an unusually bullish long-term growth outlook.
Why it moved:
The results reassured investors that the AI spending boom still has plenty of runway.
📈Salesforce: +22.6%
Salesforce surged after raising its annual revenue and profit forecasts and expanding its AI partnership with Anthropic.
Why it moved:
Investors liked the evidence that AI is helping established software companies grow rather than simply threatening them.
📈 CrowdStrike: +20.5%
CrowdStrike jumped after beating expectations and raising its annual revenue outlook.
Why it moved:
Strong cybersecurity demand showed that increased AI adoption is also creating more need for security spending.
Losers -
📉 Moderna: −4.6%
Moderna fell after announcing a $2 billion convertible bond sale.
Why it moved:
The deal raised concerns about dilution and came after a huge recent run in the stock.
📉 HP: −3%
HP fell after reporting weaker PC shipments and lower margins.
Why it moved:
The results suggested its core PC business is still under pressure.
The takeaway:
The biggest winners were concentrated in AI, software and cybersecurity, while the losers were more company-specific.
⚠️ Key Risks
1. Jackson Hole turns hawkish
Fed Chair Kevin Warsh speaks today, with inflation still above target.
Why it matters:
If he signals rates may need to stay high for longer, bond yields could rise and put pressure back on stocks.
2. The rally stays too narrow
Thursday’s gains were driven mainly by technology, with most other sectors lagging.
Why it matters:
A healthier rally needs more of the market to participate, not just Nvidia and a handful of tech names.
3. Oil and yields move higher again
Brent is still elevated near $89, while the 10-year Treasury is around 4.68%.
Why it matters:
Higher oil adds to inflation pressure, while higher yields make borrowing more expensive and weigh on valuations.
👀 What To Watch Today
Jackson Hole and the market reaction
Fed Chair Kevin Warsh’s speech is the main event today. Markets will be listening for any sign that the Fed is becoming more concerned about inflation and more willing to keep rates high for longer.
The most important reaction will be in Treasury yields and market breadth. If yields stay calm and gains spread beyond technology, that would be a positive sign. If yields jump and only a handful of AI stocks stay strong, the rally will look much less convincing.
Bottom Line
Nvidia has reignited the AI trade, but today the market’s attention shifts back to the Fed.
If Warsh keeps yields calm, the rally has room to broaden. If not, tech may struggle to carry the market alone.