Nvidia Stock Price Drops 3.4% on Rate Cut Expectations

Nvidia's stock price fell by approximately 3.4% to around $220 on Friday, August 28, 2026, following a speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole conference in Wyoming.

Warsh's comments signaled that the central bank's appetite for rate cuts remains limited due to persistent services inflation and a labor market still 'meaningfully tight', which led to a broader sell-off in rate-sensitive technology stocks. The S&P 500 also fell on Friday, resetting rate-cut expectations across Wall Street.

Nvidia had previously reported exceptional second-quarter results, with revenue reaching $96.22 billion, a 106% increase over the same quarter last year, and adjusted earnings per share of $2.46, a 128% gain from a year ago. The company's data center revenue accounted for around 88% of total sales.

Chief Financial Officer Colette Kress projected fiscal third-quarter revenue of approximately $108 billion at the midpoint, representing another sequential step up in growth. She also projected fiscal 2028 revenue growth of roughly 70%, significantly higher than the Street consensus of around 45%. Chief Executive Jensen Huang stated that demand is growing beyond 70% but is constrained by supply.