Wall Street ended the week in the green, as investors digested blockbuster Nvidia earnings, policy signals from the Jackson Hole symposium, and the latest U.S. GDP print. Nvidia took center stage, reporting Q2 revenue of $96.2B, a 106% year-over-year increase. Nvidia’s CEO Jensen Huang defended the chipmaker’s growing financial support for the AI ecosystem, saying the risks are low as the company increasingly invests in AI developers and infrastructure.
Federal Reserve Chair Kevin Warsh said Friday at Jackson Hole that inflation is still too high at 3.7% and suggested the central bank may have to raise interest rates in the coming months to bring it down, a clearer signal than he had sent previously about his economic outlook. On the economic data front, the updated U.S. GDP print showed that real GDP increased by 1.5% annualized from Q1 to Q2 2026.
The Dow climbed 0.5% this week, while the S&P also gained 0.5%, and the Nasdaq Composite rose 0.9%.
Future Wealth’s View
Following NVidia’s earnings call, markets were more concerned about AI CapEx remaining enormous. But, growing revenues suggest the gap between investment and returns may finally be starting to narrow. Markets are coming to the realization that AI demand is real, revenue growth is increasingly constrained by compute power and not from a lack of customer interest. This comes at time when markets are experiencing AI fatigue.
Post Jackson Hole speech by the Fed, the U.S. stock market held steady, but expectations are building in the bond market for the Fed to hike interest rates. The yield on the two year Treasury, which closely tracks expectations for what the Fed will do with its federal funds rate, moved from 4.22% to 4.30%, a sign that investors expect short term yields to move higher.
In a last attempt to salvage victory from a dismal loss in the Iran War, Treasury Secretary Bessant called an economic D-day press briefing mid week, stating any country supporting the Iranian economy will face consequences. But, a day later, Iranian banks were doing brisk business in Dubai, ships carrying Iranian oil were cruising to China and India was still selling rice, tea and sugar to Iran.
How the mighty United States has fallen. We now move from TACO (Trump Always Chickens Out) to BOBA (Bessant Only Barks Aloud).