U.S. stocks finished higher on Thursday, August 27, as strong results and outlooks from Nvidia and Salesforce revived enthusiasm for artificial-intelligence spending. The Nasdaq led by a wide margin, while gains in the S&P 500 masked weaker market breadth.
Market at a Glance
| Index | Close | Daily change |
|---|---|---|
| S&P 500 | 7,730.99 | +55.29 (+0.7%) |
| Nasdaq Composite | 26,541.35 | +411.16 (+1.6%) |
| Dow Jones Industrial Average | 53,569.44 | +105.56 (+0.2%) |
| Russell 2000 | 3,014.34 | +8.44 (+0.3%) |
The S&P 500 moved closer to its record from earlier in August, and all four major benchmarks rose. However, most S&P 500 constituents declined. That divergence shows that the headline gain depended heavily on a small group of large technology companies rather than a uniformly stronger market.
Nvidia Reassures the AI Trade
Nvidia surged 8.7% after reporting fiscal second-quarter revenue of $96.2 billion, up 106% from a year earlier, and profit above analysts' expectations. Its outlook for future revenue growth also exceeded forecasts, giving investors fresh evidence that demand for computing infrastructure used in AI projects remains strong.
Nvidia was the largest positive influence on the S&P 500 because of its enormous market capitalization. Its results helped ease recent concerns that AI-related valuations had outrun the profits the technology can produce.
The report supports the conclusion that Nvidia's chip demand remained powerful during the quarter. It does not, by itself, settle broader questions about the eventual returns on AI spending or whether every company associated with the theme can justify its valuation.
Salesforce jumped 22.6%, its best session in six years, after reporting stronger-than-expected profit, raising its full-year revenue forecast, and expanding its partnership to integrate Anthropic's Claude with its platform. The move was especially notable because Salesforce had previously faced concern that new AI tools might weaken established software providers. Thursday's response suggested investors instead saw near-term evidence of AI contributing to product demand.
Retailers Highlight a More Uneven Market
The session was less favorable outside the largest technology names. HP fell 2.9% despite exceeding quarterly profit and revenue expectations, as investors focused on personal-computer sales and pressure on margins from higher memory and commodity costs.
Best Buy dropped 4.4% even after beating profit and revenue forecasts. Dollar General gained 2.5% following stronger-than-expected profit, while Dollar Tree lost 3.9% as the midpoint of its forecast for an important underlying revenue measure fell short of expectations.
These moves point to a divided consumer backdrop. Discount retailers may attract households seeking lower prices, but persistent inflation and weak confidence can pressure discretionary purchases. This is an interpretation of the company reactions, not proof that all consumer spending is deteriorating.
Treasury Yields and Oil Rise
The 10-year Treasury yield rose to 4.67% from 4.66% late Wednesday after weekly data showed fewer Americans applying for unemployment benefits. The report was consistent with relatively low layoffs and a still-resilient labor market.
The increase in yields was modest but relevant after Wednesday's PCE report showed inflation at 3.7%, well above the Federal Reserve's 2% target. Strong labor conditions can give policymakers more room to keep interest rates restrictive when inflation remains elevated.
Brent crude rose 1.8% to $88.52 per barrel. Oil continues to swing as traders assess when the war with Iran might allow tankers to move more freely through the Persian Gulf. Higher oil can complicate the inflation outlook if sustained, although a single day's move is insufficient to establish a new trend.
What Investors Should Watch Next
Federal Reserve Chair Kevin Warsh's Friday address at the Jackson Hole symposium is the immediate macro catalyst. Investors will look for how he balances persistent inflation against slower second-quarter economic growth and whether he offers any guidance about the possibility of another rate increase.
Market breadth is also important. A rally dominated by a few mega-cap technology stocks can continue, but broader participation would make the advance more durable. Investors should watch whether software, semiconductors, small caps, and cyclical shares begin moving together rather than relying primarily on Nvidia.
The 10-year Treasury yield remains a key valuation input. A decisive rise from current levels could pressure highly valued growth shares even when earnings are strong. Oil is another cross-market risk because further gains could revive inflation concerns.
The verified facts support a positive but qualified reading of Thursday's session. Nvidia and Salesforce delivered strong evidence of current AI-related growth, pushing all four major indexes higher. Yet declining breadth, higher yields, rising oil, and mixed retailer reactions show that the rally was narrower than the headline indexes suggest.
Sources
- Associated Press: Tech stocks lead Wall Street after Nvidia, Salesforce and others report AI-driven growth
- Associated Press: How major U.S. stock indexes fared Thursday
- Nvidia: Second-quarter fiscal 2027 financial-results event
Market data reflects the U.S. regular trading session on August 27, 2026. This article is for informational purposes only and is not investment advice.