Wall Street capped a winning week, with the Dow Jones Industrial Average (DJIA) rising 0.53%, the S&P 500 (SPX) gaining 0.49%, and the Nasdaq-100 (NDX) climbing 0.43%.
The weekly advance came despite Friday’s retreat, which followed a hawkish tone from the Fed Chair that sparked renewed rate hike bets. In his first speech at Jackson Hole, Kevin Warsh emphasized inflation risks, adding that he doesn’t see substantial improvement in core inflation trends. The central bank head also hinted that there is room to hike, since financial conditions are not restrictive and the job market is robust. With this strong reaffirmation that restoring price stability remains the Fed’s central objective, it is not surprising that traders now see the odds of a September hike at roughly 57%, versus about 35% before Jackson Hole.
Before Warsh spoiled the party, Wall Street was in a happy rally mode after NVIDIA (NVDA) delivered a double-beat-and-raise on Wednesday after the close. The world’s largest company – which added a Palantir (PLTR)-worth chunk of market value post-earnings before giving some of it back because of Warsh – continues to post enormous growth rates, unprecedented for its size and market share. Its fiscal Q2 2027 revenues almost doubled year-over-year to $96.2 billion, despite supply constraints and zero China contribution, alongside record operating income and earnings per share. NVIDIA’s fiscal Q3 revenue is guided for $108 billion at the midpoint, meaning that in three months it will achieve roughly 1,730% growth in just four years.
