Nvidia Drives Tech Stocks Higher Amid Inflation Concerns
The US stock market saw mixed results on August 27, 2026, as technology stocks rallied due to Nvidia's excellent earnings report. The Dow Jones Industrial Average rose 0.04%, while the S&P 500 climbed 0.34% and the Nasdaq Composite Index jumped 0.87%. The strong performance of tech stocks, particularly chip and software companies, was driven by Nvidia's upbeat outlook, with its revenue more than doubling to $96.2 billion in Q2 FY27.
However, inflation concerns weighed on the market, with July PCE inflation remaining at 3.7% year-over-year. The Fed's policy and geopolitical tensions also contributed to investor hesitance. Despite this, Nvidia's stock rose 6.37%, while other tech companies like Adobe and Intel also saw gains.
The Dow was held back by weakness in healthcare and communication stocks, including Johnson & Johnson, Merck, and Verizon. Meanwhile, the S&P 500 was limited by drops in Deere, Charter Communications, Netflix, AT&T, and Merck. The global market was mixed, with South Korea's KOSPI standing out due to the semiconductor rally.
The Fed remains a major macro story, with investors monitoring comments from Chairman Kevin Warsh on balancing inflation and growth. The possibility of a rate hike in December remains a concern, with market participants expecting a 74% chance of a 0.25 percentage point increase.