Tech Stocks Rally as Nvidia Fuels Bets on 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 8.5% after saying revenue will grow about 70% in the next fiscal year. A key exchange-traded fund tracking software firms climbed the most since April 2025 on solid forecasts from Salesforce Inc. and CrowdStrike Holdings Inc. The Nasdaq 100 rose 1.1%. The tech surge lifted the S&P 500 even as most of its shares fell.

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.

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

“I continue to see rates as mildly restrictive,” Fed Bank of Boston President Susan Collins said.

Elsewhere, oil rose as the Wall Street Journal reported the Trump administration has told mediators it’s uninterested in returning to the terms of the memorandum of understanding reached with Iran in June.

Corporate Highlights:

Nvidia Corp. is nearing an agreement to acquire Hugging Face in a deal that would value the AI startup at roughly $13 billion, according to news reports. 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. Some of the main moves in markets:

Stocks

The S&P 500 rose 0.6% as of 3:30 p.m. New York time The Nasdaq 100 rose 1.1% The Dow Jones Industrial Average rose 0.1% The MSCI World Index rose 0.3% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1649 The British pound was little changed at $1.3588 The Japanese yen was little changed at 159.44 per dollar Cryptocurrencies

Bitcoin rose 2.1% to $80,086.31 Ether rose 1.6% to $2,511.17 Bonds

The yield on 10-year Treasuries advanced three basis points to 4.67% Germany’s 10-year yield advanced two basis points to 3.25% Britain’s 10-year yield was little changed at 5.03% Commodities

West Texas Intermediate crude rose 2.1% to $83.92 a barrel Spot gold rose 0.3% to $4,605.45 an ounce ©2026 Bloomberg L.P.