Nasdaq, S&P 500 lifted by Nvidia’s forecast, investors eye speech by Fed’s Warsh

On Thursday, the tech-focused Nasdaq Composite rose 1.57%, reaching 26,540.78 points, while the S&P 500 advanced 0.72%, closing at 7,730.73 points. This performance was driven by Nvidia's strong revenue forecast, which exceeded investor expectations. Nvidia shares surged following the positive forecast, signaling continued strength in the AI boom and supporting the narrative that the tech rally still has potential for growth.

Analysts noted that Nvidia's forecast of 70% revenue growth next year surpasses Morgan Stanley's estimate of 52% and the consensus estimate of 40%, suggesting the company will continue to drive growth in the sector. However, some challenges remain, such as shortages of memory components that could hinder industry expansion. Despite Nvidia's success, other sectors struggled under the weight of higher interest rates, geopolitical tensions, and global trade issues.

Software companies like Salesforce and CrowdStrike also performed well after raising revenue forecasts and reporting better-than-expected earnings. Meanwhile, investors are now turning their attention to Federal Reserve Chair Kevin Warsh's upcoming address at the Jackson Hole symposium, where he may provide insights into the central bank's stance on inflation and interest rates.