Nvidia Delivers and the Nasdaq Jumps 1.3%

August 28, 2026 - 01:49

The stock market delivered a split-screen performance on Thursday, with the Nasdaq Composite climbing 1.3 percent while the Dow Jones Industrial Average struggled to stay in positive territory. The divergence came down to two names: Nvidia and Salesforce, which together powered the tech-heavy index higher even as 23 of the 30 Dow components closed in the red.

Nvidia shares jumped after the chipmaker posted another quarter of blowout revenue, easing concerns that its breakneck growth was starting to cool. Investors took the results as a sign that demand for AI accelerators remains robust, and the stock's move rippled through the broader semiconductor sector. Salesforce also added a solid gain after reporting better-than-expected earnings and raising its full-year guidance, giving the Nasdaq a second pillar of support.

But beneath the surface, the rally was unusually narrow. Banks, industrials, and consumer stocks all lost ground, with the Dow's losses spread across a wide range of sectors. The action suggests that money is rotating into a handful of high-momentum tech names rather than spreading across the market. That kind of concentration can be fragile, and some traders noted that the day's gains were driven more by earnings reactions than by a broad shift in sentiment.

The mixed session leaves the market in an odd spot. The S&P 500 managed a modest gain, but the average stock in the index actually fell. For now, the bulls are leaning on a few big winners, and that has worked. But the lack of breadth is a reminder that this rally is not as healthy as the headline numbers might suggest.