US equity markets closed sharply higher on Thursday, with the Nasdaq Composite outperforming as a post-earnings surge in Nvidia boosted technology and semiconductor shares. The Nasdaq rose 411 points, or 1.57%, to end at 26,540.78, while the S&P 500 added 0.72% to 7,730.73 and the Dow Jones Industrial Average gained 0.19% to 53,564.21.
Nvidia jumped nearly 9% after exceeding analyst expectations and issuing a strong revenue outlook. Its fiscal second-quarter revenue more than doubled, and analysts now expect 70% revenue growth in fiscal 2028, up from a previous consensus estimate of 44%. The results reinforced demand for AI computing, although the company warned that memory component shortages could constrain industry growth. Semiconductor stocks followed higher: Broadcom rose 3%, SK Hynix and Intel gained 1% and 3%, respectively, and the VanEck Semiconductor ETF advanced 2%.
The rally extended beyond chips. Salesforce surged 23% after revenue beat expectations and it raised annual forecasts, while cybersecurity names outperformed as Okta jumped 29%, CrowdStrike gained 20% and Palo Alto Networks rose 13%. The strength in software eased concerns that AI could disrupt traditional software businesses.
Investor attention now shifts to the Federal Reserve’s Jackson Hole symposium. The Federal Reserve Chair is scheduled to deliver a closely watched speech, with markets looking for signals on inflation and interest rates. That outlook has become more uncertain after Wednesday’s Personal Consumption Expenditures reading came in hotter than expected and two Fed officials reiterated support for higher rates to contain price pressures. At the same time, US jobless claims fell for a second consecutive week to the lowest level in a month, pointing to labor market stability.
For crypto markets, the combination of risk-on equity sentiment and Fed rate uncertainty creates a mixed backdrop. A dovish signal could support risk assets, while a hawkish tone may trigger profit-taking across rate-sensitive markets.
