US close: Stocks climb as Nvidia and Salesforce spark broad tech rally

27th Aug 2026 22:31

(Sharecast News) - Major indices closed higher at the open on Thursday as traders worked through fresh earnings from Nvidia and Salesforce.

At the close, the Dow Jones Industrial Average was up 0.20% at 53,569.44, while the S&P 500 advanced 0.72% to 7,730.99 and the Nasdaq Composite saw out the session 1.57% firmer at 26,541.35.

The Dow closed 105.56 points higher on Thursday, reclaiming most of the prior session's losses, as Nvidia shares climbed 8.74% after the chipmaker beat analyst expectations and guided for strong revenue growth ahead, with Q2 revenues more than doubling year‑on‑year, topping forecasts by the widest margin in two years. The move put Nvidia on track to break its recent pattern of selling off after strong results.

Salesforce closed 22.58% higher after delivering Q2 revenues that came in ahead of Wall Street estimates, while identity‑management firm Okta added 28.63% on the back of booming demand linked to agentic AI.

As for Thursday's earnings, Best Buy posted better-than-expected second-quarter results and raised its full-year guidance, although shares fell sharply as concerns around rising computer prices weighed on sentiment, while Dollar General beat quarterly sales estimates as lower-priced essentials drove consumers to its stores at a time of economic uncertainty ​and tariff refunds provided an earnings boost, leading the firm to also raise its annual sales forecast.

After the close, Marvell Technology posted another strong quarter, with second‑quarter revenues jumping 37% year‑on‑year to $2.7bn, slightly ahead of analyst expectations as demand for its data‑centre chips continued to accelerate. Adjusted earnings rose 40% to $0.94 per share, topping the $0.92 consensus, while net income came in at $865.9m, also ahead of forecasts. Marvell's data‑centre division remained the standout performer, with revenue up 46% to $2.2bn, underscoring ongoing strength in AI‑related infrastructure spending.

On the macro front, Americans lined up for unemployment benefits at a decelerated pace in the week ended 22 August, according to the Labor Department, with initial jobless claims dropping by 4,000 to 203,000. Last week's reading was below market expectations of rise to 208,000, holding the trend of low claim counts since dropping to an almost 60-year low of 189,000 in mid-July. Elsewhere, continuing claims fell by 18,000 to 1.778m, also below expectations, while the four-week moving average, which aims to strip out week-to-week volatility, rose by 1,250 to 205,500.

On another note, US wholesale inventories picked up pace in July, rising 1.3% month‑on‑month to $959.1bn, according to advance figures from the Census Bureau. The increase marked a sixth straight monthly gain and the strongest rise since March, comfortably topping expectations for a modest 0.1% uptick. The rebound was driven by a 1.6% jump in non-durable inventories, reversing June's decline, alongside faster growth in durable goods stocks, up 1.2%. Inventories were 5.7% higher than a year earlier, underscoring steady restocking despite pockets of softer demand.

Separately, the US goods trade deficit widened sharply in July, according to a preliminary estimate from the Census Bureau, increasing to $118.8bn from $101.4bn in June. Imports rose 3.7% to $318.2bn, led by an 11.3% surge in capital‑goods purchases and a small rise in consumer goods, offsetting declines across industrial supplies, autos and food categories. Exports, on the other hand, fell 2.9% to $199.4bn, marking a third consecutive monthly drop as shipments of industrial supplies tumbled 11.2% and food and automotive exports also weakened.

Finally, the Kansas City Fed said manufacturing activity in the region held steady in August, with its manufacturing production index coming in unchanged at 17, the strongest level since April 2022. Non-durable output improved, helped by gains in paper and printing, while growth in the durable sector eased. Most month‑on‑month indicators remained in positive territory, although new export orders slipped to -2, the only negative reading. Price pressures picked up again, with prices paid rising to 55 from 53 and prices received increasing to 36 from 33. On a year‑on‑year basis, most indicators stayed positive apart from export orders, which fell to -9.

Reporting by Iain Gilbert at Sharecast.com