The Dow Jones Industrial Average rose 20.59 points, or 0.05%, to 45,585.82, the S&P 500 gained 16.68 points, or 0.26%, to 6,498.08, while the Nasdaq Composite climbed 118.63 points, or 0.55%, to 21,708.53. An index tracking semiconductor stocks advanced 0.6%, showing investor resilience despite weakness in the market’s AI bellwether.
Chipmaker Nvidia shed 0.9%, as its upbeat revenue forecast, released late Wednesday, fell short of the “blowout” results investors have grown accustomed to. Analysts cited ongoing Sino-U.S. trade tensions as a cloud over the company’s outlook. Still, Nvidia CEO Jensen Huang reassured markets that AI chip demand remains strong, predicting continued opportunities over the next five years.
“While there’s some confusion about what will happen with China, Nvidia didn’t say anything that pointed to a significant slowdown, so that took away a major risk this morning,” said Peter Tuz, president of Chase Investment Counsel.
Beyond earnings, investors drew comfort from Thursday’s economic data. Government figures showed the U.S. economy expanded faster than initially estimated in the second quarter, buoyed by business investment in intellectual property such as artificial intelligence.
Global markets were mixed: the MSCI world index rose 0.35% to 956.37, but Europe’s STOXX 600 slipped 0.2% amid concerns over France’s fiscal plans ahead of a confidence vote on its debt-reduction program.
Currency traders positioned for Fed policy moves sent the dollar lower, with the euro strengthening 0.41% to $1.1685, while the dollar eased 0.37% to 146.84 yen. Bond markets reflected caution: the two-year Treasury yield rose 2.2 basis points to 3.645%, while the benchmark 10-year yield dipped to 4.215%.
Investors are watching closely ahead of the Fed’s September 16–17 meeting, with markets pricing in an 87% chance of a quarter-point cut in September, according to CME’s FedWatch tool. In total, traders expect around 137 basis points of easing by the end of 2026.
Adding to the policy backdrop, Fed Governor Lisa Cook filed a lawsuit Thursday challenging former President Donald Trump’s attempt to remove her from office, a case that could test the central bank’s institutional independence.
Meanwhile, commodity prices firmed. U.S. crude rose 0.47% to $64.44 per barrel, Brent gained 0.48% to $68.38, and spot gold advanced 0.62% to $3,418 an ounce as investors weighed rate expectations against a still-uncertain global outlook.