[New York Stock Market] Tech Stocks Rally on Nvidia's Surprise Earnings... Nasdaq Rises 1.57%

The New York stock market climbed across the board, buoyed by Nvidia’s earnings and its optimistic outlook. As expectations grew that demand for artificial intelligence (AI) remains robust, technology stocks, including semiconductors, led the gains.

EPA Yonhap News Agency

On August 27 (local time), the Dow Jones Industrial Average closed at 53,569.44, up 105.56 points (0.20%) from the previous trading day. The S&P 500, which is focused on large-cap stocks, rose by 55.29 points (0.72%) to 7,730.99, while the tech-heavy Nasdaq gained 411.16 points (1.57%) to finish at 26,541.35.

Nvidia surged 8.74% after releasing earnings and growth forecasts that exceeded market expectations at the close of trading the previous day. The company posted revenue of $96.221 billion for the second quarter of fiscal year 2027 (May to July), a 106% increase compared to the same period last year. This was about $4 billion higher than the market estimate of around $92.2 billion, marking its 13th consecutive record quarterly revenue.

Confidence in future growth also lifted investor sentiment. Nvidia forecast that its annual revenue for fiscal year 2028 will increase by approximately 70% from the previous year, alleviating much of the market’s concern over a slowdown in AI infrastructure investment. Ryan Detrick, chief market strategist at Carson Group, commented, “It’s clear that the AI boom is not over, given that demand continues to expand.”

Nvidia’s rally spread to other semiconductor stocks. Broadcom climbed 4.49%, Intel was up 4.36%, and the SK hynix American Depository Receipt (ADR) listed on the US stock exchange rose 2.27%. The Philadelphia Semiconductor Index jumped about 2.3%.

Software stocks also showed strong performance. Salesforce soared over 22% after raising its annual revenue and profit forecasts, while CrowdStrike rose more than 20% on the back of solid earnings and upgraded guidance. As a result, the S&P 500 information technology (IT) sector index rose 3.4%.

However, the rally did not spread across the entire stock market. Most of the 11 sectors within the S&P 500 declined, with gains remaining concentrated in technology stocks.

Market attention is now turning to the speech by Kevin Warsh, Chair of the US Federal Reserve, scheduled for August 28 at the Jackson Hole Economic Policy Symposium.

With investors still facing pressure from higher-than-expected inflation readings and rising long-term Treasury yields, they are closely monitoring what signals Chair Warsh will offer regarding future interest rate policy and inflation.

Meanwhile, international oil prices rebounded for the first time in four days as expectations for eased tensions in the Middle East weakened.

On the New York Mercantile Exchange, October delivery West Texas Intermediate (WTI) crude closed at $83.53 per barrel, up 1.58% from the previous session. October Brent crude on the London ICE Futures Exchange also climbed 2.12%, settling at $89.70 per barrel. This is seen as a result of fading hopes for eased tensions between the United States and Iran, after reports that U.S. President Donald Trump is unwilling to return to the memorandum of understanding (MOU) terms signed with Iran last June.

This content was produced with the assistance of AI translation services.