U.S. stock markets closed mostly higher on Thursday, even as Nvidia shares slipped on concerns about its China business. Meanwhile, the dollar weakened against both the euro and yen as traders grew more confident that U.S. interest rate cuts are coming soon.
Nvidia’s stock fell 1.1% despite reporting revenue guidance above Wall Street forecasts. Some investors were disappointed that the outlook was not as explosive as in past quarters, with uncertainty around U.S.-China trade tensions weighing on sentiment. Still, the broader market reacted positively. The Dow Jones, S&P 500, and Nasdaq all posted modest gains, while an index of semiconductor stocks added 0.4%.
Market analyst Peter Tuz of Chase Investment Counsel said Nvidia’s results calmed investor nerves, noting that the company signaled no major slowdown. CEO Jensen Huang also downplayed fears of an AI spending bust, saying demand for chips will keep expanding over the next five years.
Economic data provided an additional boost. Revised figures showed the U.S. economy grew faster in the second quarter, thanks partly to strong business investment in intellectual property and artificial intelligence.
The Dow gained 5.97 points to 45,571.20, the S&P 500 rose 5.11 points to 6,486.51, and the Nasdaq climbed 57.08 points to 21,646.27. Globally, MSCI’s index of world stocks rose 0.16%, though Europe’s STOXX 600 fell 0.16% amid renewed concerns over France’s debt-reduction plan.
The euro strengthened 0.29% to $1.1671, while the dollar slipped 0.26% against the yen to 147. Traders are now looking ahead to the Federal Reserve’s September 16–17 meeting, where expectations point to an interest rate cut. CME’s FedWatch tool shows an 87% probability of a quarter-point cut, with markets pricing in 137 basis points of reductions by the end of 2026.
On Wednesday, New York Fed President John Williams said rates will likely come down eventually, but policymakers need more data before deciding on a September cut. Investors are also awaiting Friday’s U.S. personal consumption expenditures report, the Fed’s preferred inflation gauge.
In bond markets, two-year Treasury yields edged up to 3.637%, while the benchmark 10-year yield eased to 4.23%. Oil prices weakened, with U.S. crude falling 0.89% to $63.59 a barrel and Brent slipping 0.63% to $67.64.
In other developments, Federal Reserve Governor Lisa Cook filed a lawsuit against President Donald Trump, arguing he does not have the authority to remove her from office. The case could test the legal boundaries of the Fed’s independence and may ultimately reach the Supreme Court.
