S&P 500 Snaps 3-Week Winning Streak with 1.43% Weekly Drop as Nvidia's $96.2B Earnings Fail to Broaden Market Rally

Mumbai, Aug 29: The US stock market concluded the trading week ending 28 August 2026 with a narrow technology-driven recovery that failed to mask underlying weakness across the broader market. Global stock markets closed the week in negative territory, ending a three-week winning streak. The S&P 500 declined 1.43% for the week, while the Nasdaq Composite fell 2.05% and the Dow Jones Industrial Average lost 0.85%.  

The primary catalyst for the late-week rally was Nvidia Corporation’s blockbuster fiscal second-quarter earnings report on Wednesday, which showed revenue of $96.2 billion, substantially exceeding Wall Street’s consensus estimate of $92.2 billion. However, the rally remained concentrated in a handful of mega-cap technology names, with ten of the eleven S&P 500 sectors ending Thursday’s session in negative territory.  

Investors remained cautious ahead of Federal Reserve Chairman Kevin Warsh’s keynote address at the Jackson Hole Economic Symposium on Friday, as stubbornly elevated inflation and rising Treasury yields continued to weigh on sentiment. 

Dow Jones Industrial Average Declines 0.85% as Walmart’s 10% Slump Weighs on Blue-Chip Index 

The Dow Jones Industrial Average declined 0.85% for the week, demonstrating relative resilience compared to its technology-heavy counterparts due to its lower exposure to the volatile technology sector. The blue-chip index opened the week at 53,277 and traded within a range of approximately 53,200 to 53,700. On Monday, 24 August, the Dow gained 140.15 points, or 0.3%, closing at 53,417.16. On Tuesday, 25 August, the Dow rose 160.24 points, or 0.3%, to 53,577.40.  

Also Read: What Is the New York Stock Exchange (NYSE)?  

Wednesday, 26 August, saw the index decline 113.52 points, or 0.2%, to 53,463.88. On Thursday, 27 August, the Dow rose 105.56 points, or 0.2%, to 53,569.44. The index’s intraday high for the week was approximately 53,613.66, reached on Thursday’s opening, while the intraday low was approximately 53,200 during Monday’s session. 

Notable Dow components that influenced the index’s performance included Walmart Inc. (NYSE: WMT), which saw its smallest same-store sales growth since 2000 and fell 10% for the week. Home Depot Inc. (NYSE: HD) and Target Corporation (NYSE: TGT) performed better relative to Walmart. Merck & Co. Inc. (NYSE: MRK) provided support as healthcare stocks gained ground during the week. 

S&P 500 Snaps 3-Week Winning Streak with 1.43% Weekly Decline as Ten Sectors End in Red 

The S&P 500 declined 1.43% for the week, snapping a three-week winning streak that had pushed the index to record highs. The benchmark index opened the week at approximately 7,674 and traded within a range of roughly 7,638 to 7,737. On Monday, 24 August, the S&P 500 fell 21.51 points, or 0.3%, to close at 7,652.86. On Tuesday, 25 August, the index rose 24.42 points, or 0.3%, to 7,677.28. Wednesday, 26 August, saw the S&P 500 slip 1.58 points, or less than 0.1%, to 7,675.70. On Thursday, 27 August, the index surged 55.29 points, or 0.72%, to close at 7,730.99. The S&P 500 is now less than 2% off the all-time high it reached on 13 August. 

The index’s movement was heavily influenced by the technology sector, which surged 3.4% on Thursday alone, while all other sectors finished lower. Key contributors included Salesforce Inc. (NYSE: CRM), which soared 22.6%, CrowdStrike Holdings Inc. (Nasdaq: CRWD), which rose 20.5%, Veeva Systems Inc. (NYSE: VEEV), which gained 15.2%, Synopsys Inc. (Nasdaq: SNPS), which advanced 13.4%, and Nvidia Corporation (Nasdaq: NVDA), which surged 8.7%. 

Nasdaq Composite Sheds 2.05% as Tech Sell-Off Turns into Late-Week Recovery 

The Nasdaq Composite was the hardest hit among the major indices, declining 2.05% for the week, ending a three-week rally. The technology-heavy index opened the week at approximately 26,180 and traded within a range of roughly 25,980 to 26,541. On Monday, 24 August, the Nasdaq fell 200.26 points, or 0.8%, to close at 25,980.19. On Tuesday, 25 August, the index rose 171.11 points, or 0.7%, to 26,151.30. Wednesday, 26 August, saw the Nasdaq edge down 21.10 points, or 0.1%, to 26,130.20. On Thursday, 27 August, the Nasdaq surged 411.16 points, or 1.57%, to close at 26,541.35. The index’s intraday high for the week was approximately 26,541.35 reached on Thursday’s close, while the intraday low was approximately 25,980.19 on Monday’s close. 

The late-week recovery was driven by investors piling back into AI-related stocks following Nvidia’s earnings beat. The Philadelphia Semiconductor Index jumped 2.33% on Thursday, reflecting renewed enthusiasm for AI infrastructure plays. 

Russell 2000 Slips 0.60% as Rising Yields Pressure Small-Cap Stocks 

The Russell 2000 index of smaller companies declined approximately 0.60% for the week, underperforming its large-cap counterparts as rising long-term Treasury yields weighed on smaller, more rate-sensitive companies. On Monday, 24 August, the Russell 2000 fell 22.79 points, or 0.8%, to close at 2,995.08. The index had set a series of record highs in mid-August, but the rally stalled as long-dated Treasury yields surged, leaving the Russell 2000 back near its 50-day moving average of 2,989.51. For the year-to-date, the Russell 2000 remains up 20.7%. 

S&P 100 Gains 0.97% as Mega-Cap Tech Leads Late-Week Rally, While Dow, NYSE and Mid-Caps Show Mixed Trends 

US equity indices delivered a mixed performance during the week ended 28 August, with technology stocks supporting the major large-cap benchmarks while other market segments remained uneven. The S&P 100 gained 0.97% on Friday, 28 August, reflecting strength among mega-cap technology companies. The index had remained relatively subdued earlier in the week, including a 0.33% decline on Wednesday. Its concentrated exposure to large technology stocks allowed it to benefit more strongly from the late-week recovery than some broader market measures. 

Also Read: How to invest in US stocks 

The Dow Jones Composite Average traded near 16,744 during the week, reflecting mixed conditions across industrial, transportation and utility stocks. The Dow Jones Transportation Average traded near 21,577, while the Dow Jones Utility Average was around 1,100. The performance of interest-rate-sensitive segments remained relevant as the 30-year US Treasury yield had touched 5.339%, its highest level in 19 years, during the prior week. Higher long-term yields can influence valuations and financing conditions for sectors such as utilities and transportation. 

The NYSE Composite Index traded near 24,821 during the week, with performance reflecting the broader market’s uneven sectoral trends. Defensive sectors provided some support, while movements in technology stocks influenced the direction of the wider market. 

Meanwhile, the S&P MidCap 400 showed relative resilience. On Monday, 24 August, the index opened at 3,830.40 and closed at 3,801.30, highlighting some stability outside the mega-cap technology segment. The S&P SmallCap 600 also recorded a notable constituent change, with Tenable Holdings (Nasdaq: TENB) scheduled to join the index effective 31 August. Overall, the contrasting moves across large-, mid- and small-cap benchmarks pointed to an uneven US equity market, with mega-cap technology stocks providing the strongest support while other segments remained sensitive to interest rates and sector-specific conditions. 

Philadelphia Semiconductor Index Plunges 9.5% Before Nvidia-Led Recovery 

The Philadelphia Semiconductor Index (SOX) experienced extreme volatility during the week. The index closed at 11,423.17 on Monday, 24 August, down 2.70% on the day. The index had fallen 9.5% from 12,621.01 on 17 August, driven by concerns about a potential peak in AI infrastructure investments. Bank of America warned on 25 August that the SOX could fall an additional 10% in the near term due to technical factors and funding concerns. However, the index rebounded following Nvidia’s earnings report, closing Friday at 11,882.17. The SOX remains down 7.38% for the recent period. 

Nvidia’s $96.2B Earnings Beat and AI Optimism Drive Late-Week Tech Rally 

The primary catalyst for the week’s late-stage rally was Nvidia’s fiscal second-quarter earnings report on Wednesday, 26 August. The company reported revenue of $96.2 billion, substantially exceeding Wall Street’s consensus estimate of $92.2 billion. Adjusted earnings came in at $2.22 per share, surpassing the $2.09 to $2.10 analyst consensus. Nvidia shares rose 8.7% following the results, adding approximately $280 billion to its market capitalisation. 

Treasury Yields and Bond Market Volatility Keep Markets on Edge 

Long-term Treasury yields remained elevated throughout the week. The US 30-year yield reached 5.339% last week, marking its highest level in 19 years. The 10-year yield traded at approximately 4.7% at the start of the week. The US Treasury Department announced it would increase its buybacks of longer-dated Treasury bonds, 10-30 years, to at least $4 billion, doubling the previous $2 billion amount. This measure temporarily capped yields, with the 10-year yield falling 5 basis points to 4.68%. However, yields rebounded later in the week, with the 10-year yield hitting above 4.74% on Friday, indicating that markets remained unconvinced about the effectiveness of the measures. 

PCE Inflation and GDP Data Reinforce Fed Policy Uncertainty 

The July Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, was released on Wednesday. Headline PCE rose 3.7% year-over-year, coming in slightly hotter than market forecasts of 3.6%. Core PCE was up 3.3% year-over-year, which was in line with estimates. Second-quarter GDP was confirmed at 1.5% annualised.  

The FOMC minutes from the July meeting, released on Wednesday, confirmed that hawkish views in the meeting were deeper than the market had anticipated, though the vote was 9-3 to keep interest rates at 3.50-3.75%. However, softer inflation and labour market data since the meeting have reduced the probability of a September rate hike to approximately 31%, down from over 60% previously. By Friday, expectations of a rate hike at the Fed’s September meeting stood at about 35% according to the CME FedWatch tool. 

Jackson Hole Symposium and Fed Chair Warsh’s Speech Dominate Market Focus 

Investors remained cautious ahead of Federal Reserve Chairman Kevin Warsh’s keynote address at the Jackson Hole Economic Symposium on Friday, 28 August. The speech was expected to provide clarity on the central bank’s monetary policy path amid stubbornly elevated inflation and resilient economic data. Market observers speculated that the Treasury’s expanded buyback measures have put Warsh in an awkward position.  

Also Read: US Stock Market Timings 

Warsh had argued that elevated long-term Treasury yields reflect the market already pricing in the Fed’s potential rate hikes, suggesting the market is doing the Fed’s job. However, Treasury Secretary Scott Bessent wants to more than double buyback volumes to lower medium- and long-term yields, meaning the two heads of US fiscal and monetary policy are looking in opposite directions. 

CBOE Volatility Index Rises to 15.1 as Market Uncertainty Increases 

The CBOE Volatility Index (VIX) rose 0.9 points week-over-week to 15.1, bouncing off its year-to-date low. The VIX started the week at just over 15 and traded at 15.93 on Monday. On Friday, the VIX was up 0.5% to 14.63, hitting an intraday low of 14.13, which was the lowest level seen since 30 December. Any reading below 20 tends to indicate relatively low volatility, but other indicators suggested there was still plenty of uncertainty on Wall Street. 

Information Technology Sector Surges 3.12% as Salesforce and CrowdStrike Lead Gains 

The Information Technology sector was the best-performing S&P 500 sector of the week, advancing 3.12% week-to-date through Thursday. The sector’s gains were driven by a wave of earnings beats from major technology companies. Salesforce Inc. (NYSE: CRM) soared 22.6% after reporting adjusted earnings per share of $5.90, an astonishing 80% beat over the consensus estimate. CrowdStrike Holdings Inc. (Nasdaq: CRWD) rose 20.5% after posting revenue of $1.47 billion, up 26% year-over-year. Veeva Systems Inc. (NYSE: VEEV) gained 15.2%, Synopsys Inc. (Nasdaq: SNPS) advanced 13.4%, Palo Alto Networks Inc. (Nasdaq: PANW) rose 12.8%, Fortinet Inc. (Nasdaq: FTNT) gained 9.7%. 

Energy Sector Sheds 2.54% as Worst-Performing Sector of the Week 

The Energy sector was the worst-performing S&P 500 sector of the week, declining 2.54%. On Tuesday alone, Energy was the worst-performing sector with a loss of 1.70%. With US benchmark crude prices down nearly 5% for the week to roughly $82.50 per barrel, the sector came under pressure amid volatile crude oil prices and geopolitical uncertainty surrounding Iran. Other sectors that declined during the week included Healthcare, which declined 1.76%, Consumer Discretionary, which fell 1.61%, and Consumer Staples, which declined 1.04%. Utilities (up 0.96%) and Financials (up 0.72%) were the only sectors ahead of Technology through Thursday. 

Salesforce, CrowdStrike and Okta Surge on Earnings, While Nvidia Leads Mixed Magnificent Seven Performance 

The week’s top gainers were driven primarily by earnings beats from technology companies. Salesforce Inc. (NYSE: CRM) gained 22.6% after its 80% EPS beat. CrowdStrike Holdings Inc. (Nasdaq: CRWD) rose 20.5% following its strong quarterly results. Veeva Systems Inc. (NYSE: VEEV) gained 15.2%, Synopsys Inc. (Nasdaq: SNPS) advanced 13.4%, Palo Alto Networks Inc. (Nasdaq: PANW) rose 12.8%, and Nvidia Corporation (Nasdaq: NVDA) rose 8.7%. 

The week’s top losers included Hormel Foods Corporation (NYSE: HRL), Casey’s General Stores Inc. (Nasdaq: CASY), and Tapestry Inc. (NYSE: TPR). Dow Inc. (NYSE: DOW) fell 4.1% on Tuesday alone, while LyondellBasell Industries (NYSE: LYB) also declined. 

The Magnificent Seven stocks delivered mixed performance during the week. Nvidia Corporation (Nasdaq: NVDA) surged 8.7% following its blockbuster earnings. Microsoft Corporation (Nasdaq: MSFT) rose modestly. Apple Inc. (Nasdaq: AAPL) was up a fraction. However, other Magnificent Seven names underperformed, with weakness in consumer-facing technology stocks weighing on the broader index. 

3.7% PCE Inflation and 5.339% Treasury Yield Sustain Rate Concerns as Oil Prices Jump 6.4% 

Several key economic data releases occurred during the week. Second-quarter GDP was confirmed at 1.5% annualised. The July Personal Consumption Expenditures (PCE) price index rose 0.2% month-on-month and 3.7% year-on-year, while core PCE increased 0.2% month-on-month and 3.3% year-on-year. August Consumer Confidence declined to 89.4 from 90.2 in July. July new home sales fell to 607,000 from 678,000 in June. Initial jobless claims fell to 203,000 for the week ended 22 August, beating the consensus forecast of 210,000 and down from 207,000 in the prior week. 

Fed Signals Keep Rates at 3.50%-3.75% as 30-Year Treasury Yield Hits 5.339% 

The FOMC minutes from the July meeting were released on Wednesday, confirming that hawkish views in the meeting were deeper than the market had anticipated. The vote was 9-3 to keep interest rates at 3.50-3.75%. However, softer inflation and labour market data since the meeting have reduced the probability of a September rate hike to approximately 31%, down from over 60% previously. In the bond market, the 2-Year Treasury Yield traded higher. The 10-Year Treasury Yield traded at approximately 4.68-4.74% during the week. The 30-Year Treasury Yield reached 5.339%, its highest since 2007. 

Brent Oil Jumps 6.4% as Iran Tensions Lift Prices, While Gold Reaches $4,716 

Oil prices rose to their highest levels in a month after the President claimed he would level “tremendous economic consequences” on countries that did business with Iran. Brent crude gained over 6.4% week-over-week. WTI crude traded at $85.39 on Monday. Gold completed its fifth straight weekly advance, trading at $4,716 on Monday, receiving support from a weaker dollar following the Treasury’s buyback measures. Bitcoin had another good week, up about 3% through Thursday. 

In currency markets, the US Dollar Index (DXY) fell to a three-month low following the Treasury’s buyback measures. The dollar remained weak amid uncertainty over the conflicting signals from fiscal and monetary policy. 

Also Read: What Is the S&P 500? A Simple Guide for Everyday Investors 

The week’s market action highlighted the vulnerability of a rally driven by a narrow cohort of technology stocks, with ten of eleven S&P 500 sectors ending Thursday’s session lower despite the headline gains in major indices. The elevated Treasury yields and persistent inflation concerns suggest continued pressure on rate-sensitive sectors. Market participants should monitor the Jackson Hole symposium for policy signals, as any hawkish surprises could further weigh on equity valuations, while the narrow breadth of the rally underscores the importance of sector-level analysis over headline index performance. 

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