Hip Hip Hooray. Markets rallied today because Nvidia’s earnings delivered, blowing air back into the AI trade’s sails.

The Dow Jones Industrial Average rose 105 points, or 0.2%. The S&P 500 was up 0.7%. The Nasdaq Composite was up 1.6%.

On Thursday, Nvidia stock had its largest one-day pop since April 2025, gaining 8.7%. The company beat both earnings and sales expectations, and is projecting that revenue will grow by around 70% in fiscal 2028—well above the 45% analyst consensus. That helped boost the iShares Semiconductor ETF, which gained 2% on the day.

“Suddenly, the AI trade seemed much sunnier,” writes Steve Sosnick, chief strategist at Interactive Brokers.

Software stocks had an even better day than chips. The iShares Expanded-Tech Software Sector ETF surged 7.4%. You can thank Salesforce, whose stock jumped 23%, its largest single-day increase since August 2020. The company reported solid quarterly earnings, and announced an expanded collaboration with Anthropic that gives users access to Salesforce data and functions within the Claude chatbot. The companies have named the partnership “Claudeforce.”

The market’s enthusiasm for software stocks marks a remarkable turnaround from earlier this year, when investors were worried that AI agents would render subscription-based software obsolete. But as my colleague Nate Wolf notes, software margins and revenue have remained stable, and markets are realizing that vendors can partner, rather than compete, with AI labs.

“The deepened Anthropic partnership and launch of Claudeforce also help alleviate concerns that frontier models will diminish the need for Salesforce, instead positioning its data, applications, and governance as the trusted foundation through which customers access those models,” writes Brad Zelnick, an analyst at Deutsche Bank, in a research note.

Tech stocks aside, it was actually a bit of a tough day for equities. Only one of the S&P 500’s 11 categories—Information Technology—gained on the day.

The next big test for markets is Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Economic Policy Symposium tomorrow. Read on for what to expect.

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-	Last	Chg%
↑ Dow Jones Industrial Average	53,569.44	+0.20%
↑ S&P 500 Index	7,730.99	+0.72%
↑ NASDAQ Composite Index	26,541.35	+1.57%

8/27/2026, 8:01:02 PM ET

The Hot Stock: Salesforce +22.6%
The Biggest Loser: Hormel Foods -10.3%

Best Sector: Information Technology +3.4%
Worst Sector: Consumer Staples -1.5%

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Kevin Warsh’s Watershed Moment

Kevin Warsh’s credibility is on shaky ground heading into his first Jackson Hole conference. His keynote speech tomorrow, scheduled for 10 a.m. Eastern, could help him get on more solid footing—but only if he gives markets the concrete details investors are clamoring for.

My colleague, Megan Leonhardt, explains:

Warsh, who became Fed chairman in May, has been deliberately taciturn about his view of economic conditions, saying reduced Fed communication improves the market’s ability to interpret economic signals. While he has won plaudits on Wall Street and Main by insisting the Fed will return inflation to its long-held 2% annual target, he also roiled the stock and bond markets in July by refusing to explain, at a post-policy-meeting press conference, just how the Fed will make policy decisions under his leadership.

Tomorrow’s speech is his chance to course correct. To do that, though, he will need to provide details about what indicators and near-term conditions he is weighing in considering rate policy, and under what conditions he would consider raising rates. Many analysts doubt Warsh will drastically switch up his communication strategy, but hope he will at the very least elucidate some of his views on how the Fed will set monetary policy.

Anthony Saglimbene, chief market strategist at Ameriprise Financial, writes:

Friday’s speech is highly likely to offer little valuable insight into forward-rate policy. In fact, Warsh appears to be building his credibility on actually rejecting that kind of guidance. The current backdrop, sticky but decelerating inflation against a steepening yield curve, gives him room to remain quiet on forward policy. But whether the Chair likes it or not, investors need greater clarity on some of the rules of the road for governing the Fed’s reaction function under his leadership.

The Calendar

Fed Chairman Kevin Warsh delivers an address at the Jackson Hole Economic Policy Symposium tomorrow. He is expected to speak at 10 a.m. Eastern time.

The Institute for Supply Management-Chicago releases the Chicago Purchasing Managers’ Index for August. The consensus estimate calls for a headline reading of 58, signifying solid activity that’s modestly higher than the 57.6 figure recorded in July.

The University of Michigan releases its final inflation and spending outlooks for August. The initial reading was pegged at 51, down from a reading of 55.2 in July.

What We’re Reading Today

• When Will the AI Bubble Burst? History Says Not Anytime Soon.

• The Best Way to Own Gold in a Retirement Account—and Why You Should

• A Private Jet Mogul’s Lake Como Blowout Shows How the Ultrarich Are Flourishing

• Here’s How Global Bond Managers Are Playing Higher Yields

• Hormel Foods Is Today’s Worst S&P 500 Stock. Why the Spam Maker Is Tumbling.

• This Quantum Stock Is Puzzling. Why Its Growth Surge Is Mostly an Illusion.

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