According to Xinhua News Agency, the US Treasury Department said that Treasury bond yields are entering a stable zone ahead of the interest rate orientation speech by US Federal Reserve (Fed) Chairman Kevin Warsh at the Jackson Hole Conference on August 28 (local time).
Cheap retail chains such as Dollar General and Dollar Tree also welcomed business results exceeding expectations thanks to a wave of consumers tightening spending amid inflationary pressure.
Previously, after the end of the trading session on August 27, the US stock market recorded a positive gaining session thanks to the strong leadership of technology and semiconductor stocks.
Closing the trading session, the S&P 500 index increased by 55.29 points (0.72%), reaching 7,730.99 points and approaching a historical peak. The Dow Jones index increased by 105.56 points (0.2%), closing at 53,569.44 points; while the Nasdaq Composite broke through 411.16 points (1.57%), to 26,541.35 points.
The main driving force driving the entire market comes from the positive financial report of the "chip giant" Nvidia, along with business results exceeding forecasts from Salesforce and cybersecurity company CrowdStrike.
In which, Nvidia shares jumped 8.74% after announcing profits far exceeding analysts' expectations, and at the same time forecast that demand for artificial intelligence (AI) hardware will maintain strong growth next year.
This result helps strengthen investor confidence in the sustainability of the artificial intelligence infrastructure investment cycle. Nvidia's breakthrough not only spreads to the entire semiconductor ecosystem but also creates momentum for power supply businesses serving data centers.
The breakthrough momentum of the technology group also creates direct momentum for independent electricity producers to serve the data center. CEO James West at Melius Research commented: "The land fund with available electricity is currently a binding barrier to AI. This is a very positive sign for independent electricity producers.
Market sentiment is even more excited before the information that Nvidia reached an agreement to acquire the open source AI platform Hugging Face for 12.9 billion USD.
Although the main indices closed in green, the actual market breadth was quite narrow when up to 10/11 industry groups belonging to the S&P 500 decreased. Among them, essential consumer goods and healthcare decreased the most, losing 1.5% and 1.1% respectively. Conversely, the technology group went against the trend with an impressive increase of 3.4%, enough to compensate for the decline of most of the remaining stocks.
Besides the technology picture, the US market recorded many positive multi-dimensional signals. According to the US Department of Labor, the number of initial jobless claims in the week ending August 22 decreased to 203,000 claims, lower than the forecast of 208,000.
