US stocks end up, with S&P 500 at record high, on Nvidia results and strong economic data

U.S. stocks closed higher on Aug. 28, with the broad S&P 500 index reaching a record high after chip giant Nvidia released quarterly results a day earlier.

Nvidia reported second-quarter results that topped analysts' estimates, but its data center revenue just fell shy of forecasts for a second straight quarter. Data centers account for 89% of the company’s sales.

However, "I’m not sure I buy the idea that they truly missed on the data center line," said John Belton, portfolio manager at Gabelli Funds. "In fact, they shared a couple of really interesting nuggets on the call about that segment. They’re now targeting $20 billion of sovereign AI (artificial intelligence) revenue this year, which is double the $10 billion target they gave for last year — clearly on a strong trajectory."

Nvidia, the first company to hit a $4 trillion valuation, has the power to move stocks in either direction. It has a roughly 8% weighting in the S&P 500.

The blue-chip Dow closed uo 0.16%, or 71.67 points, to 45,636.90; the S&P 500 added 0.32%, or 20.46 points, to 6,501.86 and topping 6,500 for the first time; and the tech-heavy Nasdaq inched up 0.53%, or 115.019 points, to 21,705.158. The benchmark 10-year Treasury yield slipped to 4.207%.

In economic news, weekly jobless claims were 229,000 for the week ending Aug. 23, nearly in line with the Dow Jones estimate and down 5,000 from the previous period. Continuing claims, which run a week behind, edged lower by 7,000 to 1.95 million after hitting a nearly four-year high in the prior week.

Gross domestic product grew at a 3.3% annualized rate in the second quarter, higher than the initial estimate of 3.0% and better than the 3.1% consensus forecast.

"The economy appears to be on all cylinders, and it should be a boost of confidence to markets that most of the tariff-angst was misplaced earlier this year," said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

Corporate news

• Nvidia topped second-quarter estimates and issued third-quarter guidance above forecasts. However, its second-quarter data center revenue missed expectations. Shares inched down less than 1%.
• Best Buy's second-quarter results topped analysts' forecasts and held onto its full-year guidance. Shares lost 3.74%.
• Retailer Dick's Sporting Goods beat estimates with second-quarter results and raised its full-year outlook despite tariffs. It said it raised some prices but has resisted across-the-board increases. Its stock dropped 4.75%.
• Dollar General raised its annual forecast. The dollar store's shares were marginally higher.
• Hormel Foods missed quarterly earnings estimates. Shares of the food company slid 13.09%.
• Electric vehicle giant Tesla's European sales dropped by more than a third to 119,013 for the first seven months of 2025, according to the latest data from European Automobile Manufacturers’ Association. In July, Tesla was outsold by Chinese EV maker BYD. Tesla shares were off 1.04%.
• Bath & Body Works missed second-quarter adjusted earnings per share forecasts while sales about matched expectations. Shares tumbled 6.91%.
• Snowflake beat second-quarter forecasts and issued strong current quarter guidance. The stock soared 20.27%.
• HP's sales topped Wall Street estimates in the company's fiscal third quarter, and earnings per share matched forecasts. Its profit prediction for the final three months matched analysts' expectations. Shares added 4.42%.
• NetApp barely exceeded expectations for the first three months of its fiscal year. Its outlook about matched forecasts. Shares rose 4.54%.
• CrowdStrike's second-quarter results beat expectations but narrowly missed analysts’ estimates for sales in the current quarter. Shares gained 4.59%.
• Pure Storage reported fiscal second-quarter results that topped estimates and raised the year forecast. Shares soared 32.34%.
• Five Below beat second-quarter estimate and also expects the next three quarters to top forecasts. Shares of the discount retailer rose 3.89%.

Trump, Fed showdown

Federal Reserve Governor Lisa Cook sued to challenge her dismissal by President Donald Trump. In her legal filing, she suggested the accusation of mortgage fraud was Cook was a “clerical error” on her part and that even if a mistake was made, it does not rise to an offense that would justify removing her from office.

Trump's move come on the heels of his berating Fed Chair Jerome Powell for months to resign. He has said many times Powell and the Fed should have been lowering rates, instead of standing still. He has even threatened to fire Powell for alleged mishandling of the Fed headquarters' renovation or to name a new Fed chief before Powell's term expires in May.

Cryptocurrency

American Bitcoin, the bitcoin miner backed by two of Trump's sons, has secured investor backing for an all-stock merger with Gryphon Digital Mining that will allow the firm to start trading on the Nasdaq in September, Reuters reported, citing the company's largest investor.

Bitcoin was last up 0.61% at $111,937.80.

(This story was updated with new information.)

Medora Lee is a money, markets and personal finance reporter at USA TODAY. You can reach her at [email protected] and  subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.