Nasdaq Surges 1.57% to 26,541 as Tech Rally Defies 3.7% Inflation; S&P 500 Gains 0.72% Ahead of Warsh Speech August 28 2026

Mumbai, Aug 28: US stocks closed sharply higher on Thursday, led by a powerful technology rally that pushed the Nasdaq Composite up 1.57% to 26,541.35. The S&P 500 gained 0.72% to 7,730.80, while the Dow Jones Industrial Average rose 0.20% to 53,568.55. Technology stocks advanced despite persistent inflation concerns after the latest Personal Consumption Expenditures (PCE) data showed inflation at 3.7%, well above the Federal Reserve’s 2% target. 

Investors appeared to look beyond the inflation pressure and positioned ahead of Federal Reserve Chair Kevin Warsh’s address at the Jackson Hole Economic Symposium on Friday. His remarks are expected to offer fresh clues about the outlook for interest rates and inflation. Meanwhile, the CBOE Volatility Index (VIX) declined to 15.04, signalling lower near-term volatility expectations. 

Nasdaq Jumps 1.57% to 26,541 as Tech Stocks Lead the Rally 

The Nasdaq Composite gained 411.16 points, or 1.57%, to close at 26,541.35, after opening at 26,356.98. The index traded between 26,273.87 and 26,553.90 during the session. 

The rally was concentrated in technology, semiconductor, software and cybersecurity stocks. Nvidia climbed nearly 9%, while Salesforce surged more than 22%. CrowdStrike gained over 20%, Okta jumped more than 28%, and Palo Alto Networks advanced over 12%. 

The gains came despite weakness in several major technology names. Netflix declined more than 2%, Amazon fell over 1.5%, Alphabet slipped nearly 0.4%, and Meta Platforms declined nearly 0.9%. 

The Nasdaq 100 also strengthened, rising 417.04 points, or 1.43%, to 29,641.56, reinforcing the dominance of large technology stocks in Thursday’s advance. 

S&P 500 Climbs 0.72% to 7,730 as Tech Offsets Broad Weakness 

The S&P 500 rose 55.10 points, or 0.72%, to 7,730.80, after opening at 7,710.34. The benchmark traded between 7,689.89 and 7,741.27. 

Information Technology was the only one of the 11 S&P 500 sectors to finish higher, gaining more than 3%. The other 10 sectors ended lower, highlighting how heavily the index’s gain depended on technology stocks. 

Nvidia’s nearly 9% advance provided a major boost, while Salesforce rose more than 22%, CrowdStrike gained over 20%, Palo Alto Networks climbed more than 12%, and Adobe added over 5.7%. 

The broader market remained under pressure, with Eli Lilly falling over 1.2%, UnitedHealth declining more than 1.4%, Merck dropping over 2.2%, and Amazon losing more than 1.5%. 

Dow Gains 0.20% to 53,568 as Salesforce Adds More Than 260 Points 

The Dow Jones Industrial Average gained 104.67 points, or 0.20%, to close at 53,568.55. The index opened at 53,613.66 and moved between 53,345.62 and 53,707.62. 

The advance was narrow, with only six of the 30 Dow components finishing higher. Salesforce was the biggest driver after surging more than 22%, adding more than 260 points to the price-weighted index. 

Nvidia gained nearly 9%, IBM rose approximately 3.9%, and Intel advanced more than 4%. These gains offset declines in McDonald’s, Walt Disney, Merck and Costco, all of which fell more than 2%. 

Semiconductor Index Surges 2.33% to 11,882 as Nvidia Leads Chip Rally 

The Philadelphia Semiconductor Index jumped 270.93 points, or 2.33%, to 11,882.17, as investors moved strongly into chip stocks. 

Nvidia climbed nearly 9%, while Broadcom gained more than 4.4% and Intel advanced over 4.3%. Texas Instruments rose nearly 1.9%. 

The strength was not universal, however. AMD declined nearly 0.9%, ASML fell more than 0.5%, while Applied Materials gained approximately 0.5%. 

The semiconductor rally reinforced the broader technology-led advance as investors continued to favour companies linked to artificial intelligence and data-centre spending. 

Russell 2000 Gains 0.28% to 3,014 as Small-Caps Lag Big Tech 

The Russell 2000 rose 8.44 points, or 0.28%, to close at 3,014.34, significantly underperforming the Nasdaq’s 1.57% gain. 

The small-cap index opened at 3,005.16 and traded between 3,000.91 and 3,019.40. HealthEquity fell more than 10.5%, while Hims & Hers Health gained over 6% and Frog jumped more than 12%. 

The gap between the Russell 2000 and technology-heavy benchmarks highlighted the narrow nature of Thursday’s rally, with large-cap technology stocks accounting for much of the market’s strength. 

Also Read: How to Invest in the US Stocks From India

S&P 100 Rises 0.95% to 3,811 as Mega-Caps Drive Gains 

The S&P 100 gained 35.93 points, or 0.95%, to close at 3,811.03, outperforming the broader S&P 500. 

The index opened at 3,796.28 and traded between 3,782.78 and 3,816.63. Nvidia’s nearly 9% gain, Salesforce’s 22% surge and Broadcom’s more than 4.4% advance supported the index. 

The stronger performance of the S&P 100 showed how mega-cap technology and growth stocks remained the primary source of market gains. 

Dow Transport Falls 0.66% as Broader Market Remains Weak 

The Dow Jones Transportation Average declined 142.79 points, or 0.66%, to 21,440.27, while the Dow Jones Composite Average fell 20.05 points, or 0.12%, to 16,894.55. 

The Dow Jones Utility Average also declined 8.90 points, or 0.81%, to 1,086.21. 

The weakness in transportation and utility stocks contrasted sharply with the gains in technology and suggested that Thursday’s rally was not broad-based across economically sensitive and defensive areas. 

NYSE Composite Drops 0.36% as Market Breadth Weakens 

The NYSE Composite Index declined 88.63 points, or 0.36%, to 24,653.44, despite gains in the major technology-focused benchmarks. 

The index traded between 24,596.73 and 24,742.07. The decline highlighted the negative breadth underlying the headline gains, with technology-heavy stocks providing a disproportionate contribution to the broader market’s advance. 

Tech Gains Over 3% as 3.7% Inflation Fails to Derail Rally 

Technology stocks emerged as the central driver of Thursday’s market move despite inflation remaining well above the Federal Reserve’s target. 

The PCE price index showed annual inflation at 3.7%, while core PCE inflation stood at 3.3%. Both readings remained above the Fed’s 2% target, keeping interest-rate uncertainty elevated. 

Yet investors continued to favour technology and artificial-intelligence stocks, helped by strong corporate results and expectations for continued AI-related spending. 

The CME FedWatch tool showed markets pricing in a 38.1% probability of a September rate hike, compared with a 61.9% probability of rates remaining unchanged. 

VIX Falls 1.12% to 15.04 as Volatility Expectations Ease 

The CBOE Volatility Index fell 0.17 points, or 1.12%, to 15.04, down from Wednesday’s close of 15.21. The VIX traded between 14.42 and 15.13 during the session, reaching its lowest level in about a week. 

The decline in volatility came as investors appeared to become more comfortable with the technology-led rally, although uncertainty over inflation and Federal Reserve policy remained ahead of Warsh’s Jackson Hole speech. 

Salesforce Surges 22% as Software and Cybersecurity Stocks Rally 

Salesforce was among the strongest large-cap performers, surging more than 22% following its earnings results. CrowdStrike advanced over 20%, Okta jumped more than 28%, and Palo Alto Networks gained over 12%. 

Nvidia also climbed nearly 9%, making it one of the biggest contributors to gains across the major US technology benchmarks. 

On the downside, Wendy’s plunged more than 13.5%, Moderna declined over 5.2%, and HP fell more than 3%. 

Also Read: How to Invest in S&P 500 Stocks Through Index Funds

Nvidia Jumps Nearly 9% as AI Trade Regains Momentum 

Nvidia led the Magnificent Seven higher with a gain of nearly 9%. Tesla rose more than 2.5%, Microsoft gained over 1.7%, and Apple advanced more than 0.4%. Amazon fell over 1.5%, Alphabet declined nearly 0.4%, and Meta Platforms dropped nearly 0.9%. 

The mixed performance within the Magnificent Seven showed that Thursday’s advance was strongest in selected AI, semiconductor and software names rather than across every major technology stock. 

Jobless Claims Fall to 203,000 as Trade Deficit Widens to $118.8 Billion 

Initial jobless claims for the week ended 22 August fell by 4,000 to 203,000, below economists’ forecast of 208,000. The four-week moving average increased to 205,500 from 204,250, while continuing claims declined to 1.778 million from 1.796 million. 

At the same time, the US goods trade deficit widened to $118.8 billion in July from $101.4 billion in June, marking its largest level since March 2025. Imports increased 3.7%, driven partly by higher imports of computers, semiconductors and telecommunications equipment, while exports declined 2.9%. 

Fed Officials Keep Rate-Hike Risk Alive as Inflation Stays Above 2% 

Federal Reserve officials maintained a cautious stance on inflation as the Jackson Hole symposium began. Cleveland Fed President Beth Hammack indicated that persistent inflation above the Fed’s 2% target supports tighter policy. Kansas City Fed President Jeff Schmid also said the short-term policy rate remained too accommodative. 

Markets are now focused on Fed Chair Kevin Warsh’s Friday keynote speech for further guidance on inflation, interest rates and the central bank’s policy direction. With markets currently pricing a 38.1% probability of a September rate hike, Warsh’s remarks could become an important catalyst for Treasury yields, technology valuations and broader equity markets. 

Treasury Yields Hold Near 4.68% as Investors Await Warsh 

US Treasury yields were largely stable on Thursday after falling sharply in the previous session. The 2-year yield was around 4.65%, the 5-year yield near 4.45%, the 10-year yield around 4.68%, and the 30-year yield near 4.85%. 

The 10-year Treasury yield had declined 8 basis points on Wednesday, providing some relief to growth-oriented stocks. Investors nevertheless remained cautious because elevated inflation continues to complicate expectations for future Federal Reserve policy. 

Oil Rises Up to 2.6% as Middle East Supply Risks Persist 

Crude prices advanced as investors assessed supply risks linked to geopolitical tensions and shipping conditions. West Texas Intermediate crude futures rose 2.1% to $83.90 a barrel, while Brent crude gained 2.6% to $90.15. 

Gold futures increased 0.2% to $4,660 an ounce, while spot gold gained 0.4% to $4,609.97. Silver advanced 0.5% to $32.45, copper rose 0.8% to $4.85, and natural gas gained 1.2% to $3.45. 

The rise in oil prices added another inflation-related variable for markets as investors awaited further Federal Reserve guidance. 

Also Read : US Stock Market Timings

Dollar Holds at 99.14 as Markets Await Jackson Hole Signal 

The US Dollar Index remained broadly stable at 99.14, as investors avoided major positioning ahead of Warsh’s speech. The euro traded around 1.0840 against the dollar, while the Japanese yen stood near 148.50 per dollar. Sterling traded around 1.3150, and the Chinese yuan remained near 7.15 per dollar. 

The muted currency moves reflected caution ahead of the Federal Reserve chair’s remarks, which could influence expectations for the US interest-rate path. 

Market Outlook and Key Levels to Watch 

The S&P 500 remains within striking distance of its 52-week high of 7,816.70 , while the Nasdaq Composite trades below its 52-week high of 27,190.21 . The Dow Jones Industrial Average is approaching its 52-week high of 54,744.33.  

Key levels to watch include the S&P 500’s support at 7,600 and resistance at 7,800, with the Nasdaq’s support at 26,000 and resistance at 27,000. The yield on the 10-year Treasury remains a critical factor, with levels above 4.70% potentially weighing on equities. Investors are also monitoring the VIX, with levels below 15 indicating complacency and levels above 20 signaling increased market stress. 

Jackson Hole Symposium: What to Expect from Warsh’s Speech 

Federal Reserve Chair Kevin Warsh is scheduled to deliver his keynote address at the Jackson Hole Economic Symposium on Friday, marking his first major speech since taking office. Markets are closely watching for signals on the central bank’s approach to inflation, interest rates, and the balance sheet.  

Warsh has previously emphasized the importance of clear communication and has indicated that the Fed should speak less so that price signals from the bond market are cleaner. Investors are particularly focused on the thresholds and economic data that could influence the Fed’s policy stance, including inflation expectations, employment data, and financial conditions. The speech comes amid hot inflation data and a resilient labour market, which have complicated the rate outlook. 

The US market rally on Thursday was driven overwhelmingly by technology stocks. The Nasdaq gained 1.57%, the S&P 500 rose 0.72%, and the Dow added 0.20%, while several broader and defensive benchmarks declined. 

Technology was the only S&P 500 sector to finish higher, gaining more than 3%, while the VIX declined to 15.04. At the same time, inflation remained elevated at 3.7%, oil prices climbed, and Federal Reserve officials continued to signal concern over inflation. 

Markets will now focus on Kevin Warsh’s Jackson Hole speech, with his comments expected to provide further insight into the Federal Reserve’s approach to inflation and interest rates. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-industrial-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.nasdaq.com/market-activity/index/comp 

• https://www.nasdaq.com/market-activity/quotes/nasdaq-ndx-index 

• https://www.spglobal.com/spdji/en/indices/equity/sp-100/ 

• https://www.lseg.com/en/ftse-russell/indices/russell-us 

• https://www.nyse.com/index 

• https://www.nyse.com/index 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-transportation-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-utility-average/ 

• https://www.spglobal.com/spdji/en/indices/equity/dow-jones-composite-average/ 

• https://www.nasdaq.com/market-activity/index/sox 

• https://www.cboe.com/tradable_products/vix/