Stock Markets August 26, 2026 10:05 PM

Futures Climb After Nvidia Beats Estimates, AI Optimism Offsets Inflation Concerns

Nvidia’s strong quarter and buoyant fiscal outlook lifts tech sentiment as hotter inflation data keeps Fed policy uncertain

By Derek Hwang
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U.S. stock futures rose late Wednesday following Nvidia’s robust quarterly report and upbeat guidance, which reinforced hopes for sustained spending on artificial intelligence infrastructure. The gains in futures came even as July inflation readings exceeded expectations, keeping scrutiny on the Federal Reserve’s policy direction ahead of remarks at the Jackson Hole symposium.

Futures Climb After Nvidia Beats Estimates, AI Optimism Offsets Inflation Concerns
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Key Points

  • Nvidia’s after-hours share price rose more than 5% after quarterly revenue more than doubled year-over-year and data-center revenue surged 117%.
  • S&P 500 futures gained 0.5% to 7,726.75, Nasdaq 100 futures climbed 0.9% to 29,552.75, and Dow Jones futures were up 0.3% at 53,701.00 by 21:55 ET (01:55 GMT).
  • July’s PCE price index increased 3.7% year-over-year and 0.2% month-over-month, above economists’ expectations and leaving monetary policy prospects uncertain ahead of a Jackson Hole speech.

U.S. equity futures moved higher on Wednesday night after Nvidia’s quarterly results and outlook rekindled investor interest in artificial intelligence, while stronger-than-expected inflation data continued to underscore uncertainty about the Federal Reserve’s near-term policy trajectory.

By 21:55 ET (01:55 GMT), S&P 500 futures were up 0.5% at 7,726.75 points, Nasdaq 100 futures had climbed 0.9% to 29,552.75 points, and Dow Jones futures rose 0.3% to 53,701.00 points.

Nvidia saw its shares rise by more than 5% in after-hours trading after reporting quarterly revenue that more than doubled from the same period a year earlier, led by a 117% surge in data-center sales. The chipmaker’s forecast also signaled continued momentum in AI-related spending, with management projecting roughly 70% revenue growth for fiscal 2028.

Those results provided renewed support for the broader technology sector, which had been under pressure in recent sessions from climbing bond yields and investor worries that high valuations could leave little margin for earnings disappointments.

Earlier in the day, major U.S. equity benchmarks finished slightly lower as investors absorbed the latest inflation figures. The S&P 500 closed Wednesday down 0.02%, the NASDAQ Composite fell 0.1%, and the Dow Jones Industrial Average was off 0.2% as market participants awaited Nvidia’s earnings release.

The personal consumption expenditures price index - the Federal Reserve’s preferred inflation gauge - rose 3.7% in July from a year earlier, above economists’ consensus estimate of 3.6%. On a monthly basis, prices increased 0.2%, compared with expectations for a 0.1% rise. Those readings kept the outlook for monetary policy uncertain ahead of a scheduled speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole economic symposium.

Beyond Nvidia, investors parsed quarterly reports from several other companies reporting after the bell. Salesforce shares surged 13% in extended trading after second-quarter revenue exceeded Wall Street’s forecast. CrowdStrike jumped 10% after raising its annual revenue outlook. Synopsys traded higher, reflecting gains seen in after-hours activity, while HP shares declined about 9% on weaker PC shipment results.


Market context

The combination of strong AI-related earnings from Nvidia and hotter inflation readings produced a mixed backdrop: bullish for technology and AI infrastructure investment, but cautionary for interest-rate expectations and valuation-sensitive sectors. Traders reacted by bidding futures higher as after-hours corporate news reinforced the narrative of elevated demand for AI hardware and services.


What to watch next

  • Investor reaction to follow-on earnings reports and extended trading moves from Salesforce, CrowdStrike, Synopsys and HP.
  • Comments from Fed Chair Kevin Warsh at the Jackson Hole symposium that could influence expectations for policy tightening or accommodation.

Risks

  • Hotter-than-expected inflation readings could heighten uncertainty around Federal Reserve policy, affecting interest-rate sensitive sectors such as financials and real estate.
  • High valuations in the technology sector mean that even strong results may not insulate stocks from pressure if broader macro conditions, including bond yields, shift unfavorably.
  • Follow-on earnings from companies like HP, Salesforce, CrowdStrike and Synopsys may introduce volatility as investors reassess sector growth and profit momentum.

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