U.S. stock indexes finished higher on Thursday, with the S&P 500 up 0.72%, the Dow Jones Industrial Average up 0.20%, and the Nasdaq 100 up 1.43%, as investors leaned back into high-growth areas. Technology and AI-linked shares led the gains after Nvidia delivered a strong outlook, while upbeat reports in enterprise software and cybersecurity reinforced the risk-on tone.
The broad rally came alongside a mixed macro backdrop: weekly initial jobless claims fell unexpectedly, supporting views that the labor market remains resilient, even as remarks from Federal Reserve officials added caution for investors focused on the path of interest rates.
Key takeaways
- Price move: The S&P 500 rose 0.72% on Thursday, while the Nasdaq 100 gained 1.43%.
- Catalyst: Nvidia’s outlook for fiscal 2028 helped lift AI and semiconductor shares, while earnings-driven gains in software and cybersecurity followed.
- Rates and macro: Lower-than-expected weekly jobless claims supported equities, but hawkish Fed comments weighed on bonds and added uncertainty about future policy.
- Energy and inflation concerns: Oil prices climbed after Middle East and Ukraine-related supply risks were highlighted, potentially reinforcing inflation sensitivity.
- Implication: Investors appeared to balance improving earnings momentum against lingering rate pressure, keeping growth stocks in focus.
What drove the move
Thursday’s market strength was largely powered by technology, especially semiconductors and AI infrastructure. Nvidia rallied more than 8% after reporting Q2 revenue of $96.22 billion, above the $92.38 billion consensus cited in the report, and projecting fiscal 2028 revenue growth of about 70%. The broad AI supply-chain reaction carried over into multiple chip and equipment names, supporting a bid in the semiconductor complex and lifting the overall Nasdaq tone.
Enterprise software and cybersecurity also contributed materially to index gains. Salesforce surged about 22% after forecasting Q3 revenue of $11.42 billion to $11.50 billion, with the midpoint above the $11.42 billion consensus figure referenced in the report. Other software stocks moved higher as well, including ServiceNow, Atlassian, Datadog, Autodesk, Adobe, Palantir, IBM, and Oracle. In cybersecurity, Okta jumped more than 28% after raising its 2027 revenue forecast and CrowdStrike Holdings rose more than 20% after lifting its 2027 adjusted operating income forecast, according to the article’s figures; additional gains spread to several peer companies.
Market reaction across rates and commodities
While equities gained traction, Treasuries faced downward pressure. September 10-year Treasury notes ended lower, with the yield rising by 1.0 basis point to 4.670%, reflecting reduced demand for duration amid stock strength and hawkish signals from Fed officials. The report attributed part of the move to the unexpected drop in weekly initial unemployment claims, which can reduce the immediate case for rate cuts.
Fed officials’ comments also mattered for bond pricing. Kansas City Fed President Jeff Schmid said current policy is not restraining the economy while inflation remains above the 2% target, and indicated rate setting “might be accommodative on the short end” while emphasizing “we’ve got work to do.” Cleveland Fed President Beth Hammack similarly argued the Fed should act to contain inflation and said restraint is appropriate to bring inflation back to target, according to the article.
Oil added another layer of macro sensitivity. WTI crude futures rose more than 1% after a Wall Street Journal report said the U.S. has no interest in returning to the terms of the June deal with Iran, and after Bloomberg reported Russia planned to escalate the war in Ukraine, with potential implications for Russian crude output. The article tied the oil advance to inflation expectations concerns that weighed on Treasury prices.
Earnings momentum and economic signals
Investor expectations for the next stretch of corporate results remained a key support for equities. Bloomberg Intelligence data cited in the report indicated the S&P 500 is tracking for Q2 earnings growth of almost 32%, above the referenced projection of +23%, and described the contribution from AI-related spending as a major driver of earnings-per-share growth. It also noted that, as of the latest updates referenced, 86% of the 478 S&P 500 companies that had reported Q2 results beat estimates, based on Bloomberg data included in the article.
On the economic side, weekly initial jobless claims fell by 4,000 to 203,000, according to the report, versus expectations of an increase to 208,000. That unexpected improvement helped reinforce the view that underlying demand and labor conditions remain intact—an important factor for investors pricing the probability and timing of Fed policy changes.
What to watch next
With markets balancing strong earnings momentum against rate uncertainty, investors are likely to focus next on upcoming company reports and central-bank messaging. The article highlighted that markets were pricing a 33% chance of a 25 basis point rate hike at the next FOMC meeting on September 15-16, and another probability was cited for the ECB’s September 10 meeting. The Fed’s annual symposium in Jackson Hole, Wyoming, on Friday—where the report referenced a speech by Fed Chair Warsh—also remains a near-term catalyst for rates-sensitive assets.
