S&P 500, Dow score record high closes as Nvidia results buttress AI rally
Thu August 28, 2025 6:41 PM
All the indexes started the day in the red but at least tech didn’t stay there long as both the S&P and Nasdaq started an immediate rebound enjoying recovery all day and closing nicely in the black. The Dow wasn’t so lucky, spending half the day in the red, down some 120 points by 10 a.m. but finally broke even after noon and managed to squeeze out a 71 point gain by close. Of course, as has been mentioned all week, the trigger for all this was Nvidia which mystified traders last night by losing ground even though it turned in a report exceeding estimates and also forecast strong Q3 revenues. But as it turned out, it didn’t exceed estimates by enough and that’s what caused the downfall, which thankfully was modest.
Today’s expert quite correctly pointed out that the expectations were so high as to be described as “borderline impossible” and when the markets realized that Nvidia’s performance was still quite strong and reinforced the belief that AI remains very strong, everything came back. Also promoting the comeback was unemployment claims coming in below estimates. Now that Nvidia is finally old news, all eyes are now on Friday’s PCE report which will provide another strong indicator on inflation which, if falling, will bolster the rate cut scenario. There are still strong expectations of a September cut. Lisa Cook has a court date Friday to challenge her firing and hopefully reinforce the Fed’s independence. Volume remains exceedingly light coming in at 13.8, again way below the 16.7 billion average.
DJ: 45,565.23 +147.16 NAS: 21,590.14
+45.87 S&P: 6,481.40
+15.46 8/27
DJ: 45,636.90 +71.67 NAS: 21,705.16
+115.02 S&P: 6,501.86
+20.46 8/28
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