US Stocks Hit Record as Nvidia Leads Gains Economy Shows Strength

Photo:Reuters

United States stock markets closed higher on August 28, with the broad S&P 500 index hitting a record level for the first time in history. The rise came after chip-making giant Nvidia released its quarterly results, which were closely watched by investors across the globe.

Nvidia’s Results Lift the Market

Nvidia, now the first company ever to touch a $4 trillion value, reported second-quarter results that were better than analysts expected. However, its data center business, which makes up nearly 89% of its sales, fell just short of Wall Street forecasts for the second straight quarter.

Even with that slight miss, investors saw promise. Portfolio manager John Belton said the company is still showing strong growth potential. Nvidia revealed that it expects $20 billion in sales from sovereign artificial intelligence (AI) projects this year, which is double last year’s $10 billion. That number suggests governments worldwide are heavily investing in AI systems powered by Nvidia’s technology.

Because Nvidia carries a heavy 8% weight in the S&P 500, its stock performance has the power to swing the entire market.

Market Performance

* Dow Jones Industrial Average rose 0.16% (71.67 points) to 45,636.90.

* S&P 500 gained 0.32% (20.46 points) to finish at a new record of 6,501.86, topping 6,500 for the first time.

* Nasdaq Composite jumped 0.53% (115.01 points) to 21,705.15.

* The 10-year Treasury yield eased slightly to 4.207%, showing calmer bond markets.

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Economic Updates Give Confidence

The US economy also gave reasons for investors to feel positive:

* Jobless claims fell to 229,000 for the week ending August 23, down from 234,000 the week before. This shows fewer Americans are filing for unemployment benefits.

* Continuing claims — which track how many people remain unemployed — dropped by 7,000 to 1.95 million, after hitting a nearly four-year high earlier this month.

* Gross Domestic Product (GDP) grew at a 3.3% annual rate in the second quarter, better than both the earlier estimate of 3.0% and the 3.1% that economists had predicted.

Economist Chris Zaccarelli said, “The economy appears to be firing on all cylinders, and earlier worries about tariffs hurting growth were largely misplaced.”

Corporate Highlights

The earnings season continued with mixed results:

* Nvidia: Beat overall estimates, guided higher for Q3, but data center sales missed expectations. Shares dipped less than 1%.

* Best Buy: Sales topped forecasts but stock fell 3.74% after cautious guidance.

* Dick’s Sporting Goods: Beat results, raised full-year outlook, but shares slid 4.75%.

* Dollar General: Lifted its annual forecast, shares rose slightly.

* Hormel Foods: Earnings missed expectations, stock plunged 13.09%.

* Tesla: European sales dropped by one-third in the first seven months of 2025. In July, Chinese EV maker BYD outsold Tesla in Europe. Shares slipped 1.04%.

* Bath & Body Works: Earnings missed, shares dropped 6.91%.

* Snowflake: Beat forecasts and gave strong guidance, stock soared 20.27%.

* HP: Sales topped expectations, profit outlook steady, stock gained 4.42%.

* NetApp: Beat expectations slightly, outlook steady, stock rose 4.54%.

* CrowdStrike: Beat Q2 results, but sales forecast missed slightly, shares climbed 4.59%.

* Pure Storage: Strong Q2 and raised forecast, shares skyrocketed 32.34%.

* Five Below: Results better than expected, stock rose 3.89%.

Fed and White House Tensions

Markets also paid attention to political drama. Federal Reserve Governor Lisa Cook filed a lawsuit after being dismissed by President Donald Trump, who accused her of mortgage fraud. Cook’s filing argued it was only a clerical error and not serious enough to justify removal.

This comes after Trump’s repeated attacks on Fed Chair Jerome Powell, whom he has pressured to resign. Trump has accused Powell of failing to cut interest rates and even suggested he might fire him before his term ends in May.

Bitcoin and Crypto News

In cryptocurrency markets, American Bitcoin, a mining company backed by two of Trump’s sons, announced it will merge with Gryphon Digital Mining in an all-stock deal. The merger will allow it to list on Nasdaq in September.

Meanwhile, Bitcoin rose 0.61%, trading at $111,937.80.

The US markets ended the day on a positive note, lifted by strong tech influence, upbeat economic data, and optimism about corporate earnings. Nvidia remained the star of the show, even with a slight shortfall in data center revenues, as its AI-focused plans reassured investors.

However, challenges remain: trade tariffs, Tesla’s decline in Europe, and political fights between the White House and the Federal Reserve could bring volatility in the coming weeks. For now, though, Wall Street is celebrating another record milestone.