Nasdaq, S&P 500 lifted by Nvidia's forecast; investors eye speech by Fed's Warsh

Nasdaq, S&P 500 lifted by Nvidia's forecast; investors eye speech by Fed's Warsh

By Saeed Azhar, Purvi Agarwal and Niket Nishant

Thu August 27, 2026  

It could easily have been a self-fulfilling prophecy for disaster with markets expecting such lofty results from Nvidia that, had they been less than stellar, the AI boom might have been dampened. But lucky for the markets, Nvidia came through with a glowing report that has once again firmly put AI on a vigorously forward path. The company’s forecast for a whopping 70% revenue growth next year is almost double the market’s lofty estimate of 40% and even topping Morgan Stanley’s impossibly optimistic 52% forecast.  

There were 3-digit gains all around with AI and software companies surging and the chip index up 2.3%.  The indexes took a dip around 1:30 as inflation/rate increase realities and the war standoff gave the markets another reality check but tech came back by close. The Dow which was up over 200 lost about half that gain before close. Warsh is not expected to provide a lot of new insight into inflation Friday but any clarity will be anxiously watched.  Two Fed officials are already on the record as favoring a rate hike. At 14.9 billion, volume remains below the 16.03 average, but getting closer. 

DJ: 53,463.88  -113.52         NAS: 26,130.20  -21.10         S&P: 7,675.70  -1.58             8/26

DJ: 53,569.44  +105.56        NAS: 26,541.35  +411.16      S&P: 7,730.99  +55.29          8/27

Thu 8-27-26 5:10 pm Nasdaq, S&P 500 lifted by Nvidia's forecast; investors eye speech by Fed's Warsh | Reuters