Market Recap – Thursday, August 28, 2025
Stocks Set New Highs While Nvidia’s AI Buzz Meets a High Bar
Stocks ended today on a strong note, with the S&P 500 closing above the 6,500 mark for the first time ever. Gains were led by tech and semiconductors, as the Nasdaq rose 0.53% and the S&P 500 climbed 0.32%. The Dow and small-cap Russell 2000 also finished modestly higher. Investors mostly looked past political noise and focused on a steady stream of earnings, including Nvidia’s much-anticipated report. Long-end Treasury yields eased slightly while the dollar slipped. Gold rose nearly 1%, oil ticked higher, and Bitcoin remained flat.
In earnings, Nvidia delivered another beat and raise, but a softer Data Center result and cautious tone on China left some investors underwhelmed. Still, the AI narrative remains alive and well with strong momentum around its Blackwell chip rollout and sovereign demand. Other tech names like Snowflake and Pure Storage surged on upbeat results and AI tailwinds, while Veeva and Nutanix pulled back despite solid quarters. Retail earnings remained busy — Burlington and Five Below impressed with strong margins and upbeat outlooks, while Urban Outfitters and Hormel warned of rising tariff and input cost pressures.
On the economic front, revised Q2 GDP showed better-than-expected growth at 3.3%, driven by resilient consumer spending and fewer imports. Jobless claims edged lower, reflecting a still-healthy labor market, while pending home sales slipped as buyers await lower mortgage rates. Meanwhile, the legal battle between Fed Governor Lisa Cook and the Trump administration officially began, with Cook filing suit to contest her dismissal and defend the Fed’s independence.
Here's Our Take
Today’s session was another reminder of how hard it is to impress when expectations are sky-high. Nvidia’s results were objectively strong, but with the stock up more than 35% this year, even solid execution wasn’t enough to ignite another leg higher. That said, the AI thesis remains intact — Blackwell momentum, enterprise demand, and sovereign AI build-outs all point to continued strength in infrastructure spend. What’s more interesting now is how this AI story spreads to second-tier names like Snowflake and Pure Storage, which are starting to show traction as picks-and-shovels providers.
Meanwhile, economic data remains consistent with a “soft landing” scenario. GDP growth was revised up, jobless claims are trending sideways, and inflation will come into sharper focus with tomorrow’s core PCE print. Barring any surprises, the Fed still seems on track for a rate cut in September, despite the political drama unfolding around Governor Cook. With seasonality and tariffs also looming, the next few weeks could test this rally’s durability — but for now, the market continues to climb the wall of worry.
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