The Nasdaq Composite led U.S. equities higher on Thursday, rising 0.83% to 26,342.87, as Nvidia’s shares surged 7.3% following a quarterly report that underscored persistent demand for AI computing hardware. The S&P 500 advanced 0.35% to 7,702.44, while the Dow Jones Industrial Average edged up 0.08% to 53,499.60.
Nvidia’s outlook, though tempered by warnings of potential memory component shortages, reassured investors about the near-term trajectory of AI infrastructure spending. The chipmaker’s results followed Wednesday’s release of the Personal Consumption Expenditures (PCE) price index, which came in slightly above expectations, adding complexity to the Federal Reserve’s policy path ahead of Friday’s closely watched speech by Chair Kevin Warsh at the Jackson Hole economic symposium.
Matthew Tuttle, CEO of Tuttle Capital Management, noted that markets rewarded Nvidia’s ability to consistently exceed quarterly expectations. “The market is rewarding demand visibility,” Tuttle said. “Nvidia has made beating quarterly estimates routine, but investors still face tougher questions about the sustainability of growth.”
Anthony Saglimbene, chief market strategist at Ameriprise Financial, said investors are seeking clarity from Warsh on the Fed’s inflation target and policy stance. “The market wants Warsh to define the key data points and thresholds that would prompt the committee to ease rates,” Saglimbene said. “Investors also want confirmation on whether he remains committed to the 2% inflation target.”
The mixed inflation signals—following a softer consumer inflation report earlier in the month—have heightened uncertainty about the timing and magnitude of future Fed policy adjustments. Traders will parse Warsh’s remarks for signals on the Fed’s reaction function to incoming data, particularly as the U.S. Treasury market adjusts positioning ahead of the weekend.
