Tech Rally Powers On as Nvidia Rekindles AI Trade: Markets Wrap

(Bloomberg) — A blockbuster outlook from Nvidia Corp. spurred a rally in technology stocks, bolstering confidence in the artificial-intelligence trade that has powered the bull market.

The world’s most valuable company jumped 7.5% after saying revenue will grow about 70% next fiscal year, bringing relief to investors worried about an AI bubble. A closely watched exchange-traded fund tracking software firms climbed 6.5% on solid forecasts from Salesforce Inc. and CrowdStrike Holdings Inc. The Nasdaq 100 rose about 1%, outpacing the broader market.

While concerns over the sustainability of AI spending may continue to inject periodic tech volatility, the second-quarter earnings season has shown that fundamentals remain robust, according to Mark Haefele at UBS Global Wealth Management.

“It is clear the AI wave is far from over, as demand continues to expand more and more,” said Ryan Detrick at Carson Group.

Aside from parsing tech earnings, investors are also bracing for Federal Reserve Chair Kevin Warsh’s speech Friday at the Economic Policy Symposium in Jackson Hole, Wyoming.

With Treasury yields still elevated by sticky inflation and fiscal deficit concerns, he’s under pressure to act more like his predecessors and give clearer guidance of how the Fed might react over the remainder of the year.

“Clear policy signal will likely be scarce given Warsh’s reluctance to provide forward guidance,” said Elias Haddad at Brown Brothers Harriman & Co. “Instead, Warsh may preview the Fed five task forces’ early findings on communications, the balance sheet, economic data, productivity and jobs, and the inflation frameworks.”

Warsh is likely to deliver an economic outlook with a “hawkish flavor” in a bid to keep long-term yields in check when he speaks Friday, Torsten Slok at Apollo Global Management told Bloomberg Television.

“If he does not give any framework guidance, the risk is that it will involve a much higher move in long rates,” Slok added.

Fed Bank of Kansas City President Jeff Schmid told Bloomberg Television the central bank’s rate setting is not restraining the economy, with inflation remaining above the target. In an interview with CNBC, his Cleveland counterpart Beth Hammack reiterated that now is the time for officials to act to contain price pressures.

Corporate Highlights:

Best Buy Co. fell as an increase in its outlook failed to impress investors, a sign that Wall Street is looking for stronger signs of recovery. Dollar Tree Inc. mostly met expectations last quarter and left its sales growth outlook for the year unchanged. Dollar General Corp. lifted its view for annual revenue after a sales beat. Moderna Inc. plans to raise $2 billion from selling notes that can be exchanged for shares, which it will use to invest in its cancer vaccine business and repay debt. Wendy’s Co. sank as Reuters reported that Nelson Peltz’s Trian Fund Management has no plans to make a bid to take the fast-food chain private. HP Inc.’s investors looked past an expected boost in its profit forecast and worried about future demand for computers and printers. Kioxia Holdings Corp. and Sandisk Corp. plan to spend more than ¥5 trillion ($31.4 billion) to ratchet up production capacity in Japan, boosting output of a critical AI data center component that’s in short supply. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.6% as of 11:30 a.m. New York time The Nasdaq 100 rose 1% The Dow Jones Industrial Average rose 0.4% The Stoxx Europe 600 fell 0.7% The MSCI World Index rose 0.3% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1651 The British pound was little changed at $1.3588 The Japanese yen was unchanged at 159.31 per dollar Cryptocurrencies

Bitcoin rose 2.8% to $80,631.42 Ether rose 2% to $2,521.88 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.66% Germany’s 10-year yield advanced one basis point to 3.25% Britain’s 10-year yield was little changed at 5.03% Commodities

West Texas Intermediate crude was little changed Spot gold was little changed ©2026 Bloomberg L.P.