S&P 500 Tops 6,500 Before Weekly Pullback
Markets showed strength through the week, with the S&P 500 topping 6,500 for the first time ever on Thursday. Despite that milestone, all three major indices finished lower today (Friday), trimming gains but still closing out an otherwise strong week.
Nvidia Earnings Highlight AI Boom
Nvidia, now the world’s largest company by market cap, reported earnings mid-week. It delivered a double beat on revenue and EPS, though data-center growth came in slightly below expectations, prompting a pullback in the stock over the past couple of sessions. Still, forward guidance was robust, with management forecasting continued strength in AI demand — a signal that the AI boom remains a powerful driver for markets heading into the next quarter.
U.S. GDP Growth Revised Higher
- Q2 GDP (second estimate): +3.3% annualized (vs. +3.1% expected)
- Q1 GDP: –0.5% contraction
- 1H 2025 growth: ~1.4% annualized
Inflation Data in Line with Expectations
- PCE inflation (July): +2.6% YoY (in line with forecasts)
- Core PCE (ex-food & energy): +2.9% YoY (in line with forecasts)
Market Outlook
With inflation holding steady and growth rebounding, markets are pricing in an ~85% chance of a Fed rate cut at the September 16–17 FOMC meeting.