US Stocks Rise as Dow Gains Nearly 300 Points; NY Fed President Says Higher Long-Term Yields Reflect Strong Economy; Nvidia Gains 3%, Dell Jumps 15% Post-Earnings

TradingKey - U.S. bond yields pulled back from highs as New York Fed President John Williams stated that the rise in long-term bond yields was not driven by inflation concerns, but rather reflected economic strength. U.S. stocks rebounded, with the Dow rising about 300 points, while Nvidia and Dell Technologies showed strong performance.

At the close, the Dow Jones Industrial Average rose 0.56% to 53,061.95; the Nasdaq Composite Index gained 0.45% to 26,217.83; and the S&P 500 Index rose 0.46% to 7,666.60.

Tech Stock Performance

Nvidia (NVDA) rose 3.21% to $224.41.

At the G20 Tech Summit, Jensen Huang stated that Nvidia would "invest nearly $1 trillion in U.S. infrastructure in this year alone," citing the U.S. regulatory environment and energy policy. He likened AI to public infrastructure such as water and electricity, calling it "the greatest equalizer," and emphasized that "every country needs to build infrastructure to support its own economy."

Dell Technologies (DELL) rose 15.76% to $492 following its earnings release.

Dell's non-GAAP earnings per share for the second quarter of fiscal 2027 reached $7.04, significantly exceeding Goldman Sachs' estimate of $4.96, the consensus of $4.92, and the company's own guidance range of $4.70 to $4.90. Revenue reached $47 billion, also topping Goldman Sachs' estimate of $44.8 billion and the upper bound of the guidance range of $45 billion. Goldman Sachs believes that the combination of ongoing enterprise IT hardware refresh demand and AI-related infrastructure spending provides Dell with differentiated long-term growth support.

Among mega-cap tech stocks, Nvidia (NVDA) rose 3.21%, Meta Platforms (META) gained 2.47%, Google (GOOGL) climbed 0.63%, Tesla (TSLA) edged up 0.28%, and Amazon (AMZN) added 0.02%; on the downside, SpaceX (SPCX) fell 1.07%, Microsoft (MSFT) dropped 0.84%, Broadcom (AVGO) slipped 0.66%, and Apple (AAPL) dipped 0.05%.

[Source: FutuBull]

The Philadelphia Semiconductor Index rose 0.45% to 11,339.25 points. Among its 30 constituents, 19 advanced and 11 declined.

Memory stocks showed strength in part, with SK Hynix (SKHY) rising 2.61%, Micron Technology (MU) gaining 2.43%, and SanDisk (SNDK) advancing 1.08%; on the downside, Seagate Technology (STX) fell 0.99% and Western Digital (WDC) slipped 0.34%.

Company News

Google Releases Gemini 3.8 Flash, with Performance Approaching Top-Tier Model Claude Opus 5

Google released two new models: Gemini 3.8 Flash and Gemini 3.8 Flash Cyber. This marks Google's third Flash series model released within six weeks, continuing the high-speed and low-cost characteristics of the previous Gemini 3.7 Flash while further enhancing capabilities in code generation, complex reasoning, agentic tasks, and cybersecurity. The former is positioned for software engineering, AI agents, and multi-step reasoning tasks in specialized fields, while the latter focuses on vulnerability discovery and automated remediation, available only to verified, trusted defenders.

Nvidia CEO Jensen Huang Urges G20 to Accelerate AI Adoption to Drive Economic Growth

At a technology event in North Carolina, Nvidia CEO Jensen Huang called on Group of 20 (G20) members to accelerate the adoption of artificial intelligence to drive economic growth, and urged the world's major economies to expand data centers and other infrastructure to support the emerging technology. "Every country needs to build infrastructure so that it can support its economy," Huang said, likening the technology to water, electricity, and other public utilities. "It is a great equalizer," he added. In his speech, Huang noted that for a country, the "worst possible outcome" would be to "fall behind." He warned that this could happen if the public and policymakers allow concerns about AI to dominate the conversation surrounding the technology.

TSMC Reportedly Faces Tight CoWoS Supply, Shifting Customer Focus to Intel's EMIB-T

According to media reports, TSMC's CoWoS orders are fully booked through 2027, with some customers having to wait over a year to receive their orders. As TSMC's supply bottlenecks persist, Intel's new technology is drawing attention as an alternative. MediaTek officially announced during a recent earnings call that it plans to adopt both CoWoS and EMIB-T technologies to develop artificial intelligence application-specific integrated circuits (ASICs) at scale. Broadcom and Meta are also considering a transition from CoWoS to EMIB to reduce costs, while Google and Nvidia have also demonstrated strong interest in EMIB-T.

Industry & Macro News

U.S. August ADP Unexpectedly Weakens, Adding Just 38,000 Jobs, Below Expectations

Data released by ADP on Wednesday showed that the U.S. private sector added 38,000 jobs in August, below market expectations of 48,000, while the July figure was revised up from 44,000 to 46,000. August job gains were the lowest since January this year, indicating that U.S. private-sector employment growth remains weak.

New York Fed President: Rising Long-Term Bond Yields Reflect Economic Strength, Not Inflation Concerns

New York Fed President John Williams stated that rising long-term bond yields are not driven by inflation concerns, but rather reflect a strong economy: "What is truly driving up real borrowing costs is the strong U.S. economy, as well as a robust economic outlook supported by heavy investments in AI, data centers, and the overall technology sector." He downplayed claims that inflation concerns were pushing up borrowing costs.

Fed Beige Book: Economic Outlook Generally Positive but Uncertainty Rises

The Fed's Beige Book showed that U.S. economic activity grew modestly since early July. Among the 12 Federal Reserve districts, 10 recorded slight to modest growth, while 2 reported no change. Consumer spending increased slightly, but consumer price sensitivity heightened, while high-end consumption remained strong. Auto sales were sluggish, affected by weak confidence, high gas prices, and rising financing costs. Manufacturing activity picked up in most districts, with some reporting strong demand for defense- and data center-related orders. Labor market growth slowed, with overall gains being only slight; labor demand was relatively solid in sectors such as manufacturing and construction, but declined in retail and hospitality. On prices, most districts reported modest price increases, with cost pressures from energy, transportation, raw materials, and tariffs persisting. Businesses expect the future economic outlook to be generally positive, but remain watchful of uncertainties stemming from energy prices, policies, and international conflicts.

Trump Administration Plans Chip Tariffs While Offering Exemptions for Domestic U.S. Manufacturers

U.S. Commerce Secretary Lutnick said Wednesday that the Trump administration is considering a new round of tariffs on imported semiconductors, which could further increase levies on foreign chips to attract more semiconductor manufacturing to the U.S. However, these tariffs may be paired with tariff relief measures targeting companies that invest in domestic manufacturing, mirroring the approach previously taken by the Trump administration for the pharmaceutical industry. Lutnick said: "That is the principle the semiconductor industry should follow: if you produce in the U.S., we will give you tariff relief; if you don't produce in the U.S., you will pay tariffs. This is a very smart approach, and it works effectively."