Today’s Market Recap: Nvidia Surges Nearly 9%, Salesforce and CrowdStrike Ignite Software Stocks as Market Focuses on Jackson Hole Meeting

Tracking Market Trends

TradingKey - On August 27, Eastern Time, the three major U.S. stock indices closed higher across the board, led by the Nasdaq. Nvidia's strong earnings report and optimistic revenue outlook reignited the AI trade, driving a sharp rebound in tech, software, and select semiconductor stocks. Although the market is still awaiting policy signals from Federal Reserve Chair Warsh at the Jackson Hole symposium, the resilience of AI demand temporarily outweighed concerns over inflation and high interest rates, helping restore risk appetite.

At the close, the Dow Jones Industrial Average rose 0.20% to 53,574.35; the S&P 500 Index gained 0.72% to 7,730.99; and the Nasdaq Composite Index advanced 1.57% to 26,541.35.

In terms of sectors and individual stocks, Nvidia (NVDA) surged 8.74% to $227.98, serving as a primary driver of gains in the Nasdaq and S&P 500. The company's latest quarterly results and long-term revenue outlook alleviated market concerns over slowing AI chip demand, while reinforcing investor confidence in the data center capital expenditure cycle. Broadcom (AVGO) rose 4.49%, further lifting sentiment across the semiconductor sector.

Software and cybersecurity stocks also posted strong performance. Salesforce (CRM) jumped 22.55%, driven mainly by robust financial results, raised full-year revenue and profit guidance, and its collaboration with Anthropic's Claude model. CrowdStrike (CRWD) rose 20.5% after reporting better-than-expected second-quarter results and raising its full-year revenue outlook, signaling continued growth in AI security demand. The rebound in software stocks also eased market concerns that "AI would disrupt the business models of traditional software companies."

In commodities, crude oil rebounded. Brent crude (UKOIL) closed up 2.04% at $88.46, while WTI crude (USOIL) gained 1.99% to close at $83.53. The rise in oil prices was primarily driven by uncertainty surrounding US-Iran relations. Market reports indicated that the Trump administration has no intention of reinstating the terms of the June ceasefire agreement, making the resumption of diplomatic talks this week more difficult. Meanwhile, although traffic through the Strait of Hormuz showed slight improvement, it remains below recent average levels, meaning energy transit risks have not been fully eliminated.

In precious metals, gold (XAUUSD) rebounded slightly. Spot gold rose 0.16% to $4,601.95. A weaker U.S. dollar provided support for gold prices, but hotter-than-expected U.S. PCE inflation data for July, rebounding oil prices, and elevated Treasury yields capped further upside. Market focus shifted to Warsh's upcoming speech at the Jackson Hole symposium to gauge whether the Federal Reserve will continue to emphasize inflation risks.

In the crypto market, Bitcoin (BTCUSD) climbed back above $80,000, trading around $80,400. The rally in tech stocks and improved risk sentiment supported Bitcoin, though the U.S. dollar, Treasury yields, and Fed policy expectations remain key variables for short-term volatility.

Market News

Nvidia pauses revenue-sharing arrangements with AI cloud companies. Market reports indicate that Nvidia has paused revenue-sharing arrangements with certain AI cloud service providers. The model originally allowed cloud providers to acquire GPUs at lower upfront costs and share subsequent cloud compute revenues with Nvidia. This adjustment signals that Nvidia is reevaluating the business models, financial pressures, and collection risks of its AI cloud customers.

Anthropic discussed acquiring MatX for about $7 billion. Sources said Anthropic discussed acquiring AI chip startup MatX in a deal valued at around $7 billion to accelerate its in-house AI hardware layout and support its rapidly growing model training and inference needs. However, Anthropic ultimately abandoned the acquisition plan and has not yet decided to pursue a similar transaction.

Kioxia and SanDisk plan to invest over $31 billion in Japan. Kioxia and SanDisk (SNDK) announced plans to invest more than $31 billion in Japan by 2032 to advance memory chip technology and expand production capacity. Among these efforts, Kioxia plans to build a new memory chip production facility at its Kitakami plant in Iwate Prefecture, Japan. As demand for AI servers, enterprise SSDs, and high-performance storage continues to grow, memory chips are becoming a critical link in the AI infrastructure cycle.

U.S. initial jobless claims fall, showing ongoing labor market resilience. According to U.S. Department of Labor data, initial jobless claims fell to 203,000 for the week ending August 22, below market expectations. Employment data indicates that while hiring has slowed, layoffs remain low. This data provides room for the Federal Reserve to remain focused on inflation and keeps the market highly sensitive to whether Warsh will deliver hawkish signals at the Jackson Hole symposium.

Oil price rebound brings inflation risks back into focus. Crude oil markets repriced geopolitical risk premiums after the Trump administration refused to restore the terms of a previous Iranian ceasefire agreement. Both Brent and WTI crude rebounded, indicating that the market remains concerned about uncertainties surrounding transit through the Strait of Hormuz, Iranian supply, and Middle East shipping security. If oil prices rise again, it could weaken previous market optimism about cooling inflation following the PCE data and continue to impact the Federal Reserve's policy path.

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