Nvidia Reports $96.2B Quarter as US Inflation Stays Sticky at 3.7%

📊 Today's North American Markets

1. Nvidia Reports $96.2 Billion Quarterly Revenue, Up 106% Year-Over-Year

Source: NVIDIA Newsroom

Nvidia today (August 26) reported revenue of $96.2 billion for the second quarter of fiscal 2027, ended July 26, 2026, up 18% from the prior quarter and up 106% from a year ago. Both GAAP and non-GAAP gross margins came in at 75.0%, with diluted earnings per share of $2.46 (GAAP) and $2.22 (non-GAAP).

Founder and CEO Jensen Huang said AI has reached an inflection point and that "compute is revenue," with demand accelerating. He noted that the Vera Rubin chip is now in full production and that the AI infrastructure buildout is proceeding at full steam across the U.S. and around the world.

Nvidia returned roughly $26.0 billion to shareholders during the quarter through stock buybacks and cash dividends, with about $99.0 billion remaining under its repurchase authorization. It will pay a quarterly dividend of $0.25 per share on October 1, 2026, to shareholders of record on September 10.

Source link

2. Software and Cybersecurity Stocks Surge as S&P 500 Earnings Poised to Rise 50%

Source: Yahoo Finance

The second-quarter earnings season is nearly complete, with Nvidia's Wednesday beat serving as a keystone to a remarkably strong stretch of corporate reports. Strong results from software and cybersecurity companies Salesforce, CrowdStrike and Okta lifted all three stocks by double digits in extended trading the same day.

According to FactSet data, second-quarter earnings for S&P 500 companies are on pace to rise 50% year over year, the highest growth rate since 2021. Bank of America strategists noted that artificial intelligence has been the growth engine behind that broad-based earnings expansion.

Besides Nvidia, investors also watched for updates from Dollar Tree, Dollar General, Intuit and Zoom, as well as retailers such as Dick's Sporting Goods and Kohl's.

Source link

3. Dick's Sporting Goods Plunges 30% in a Warning Sign for Struggling Nike

Source: Yahoo Finance

Dick's Sporting Goods crashed 30.7% on Tuesday after reporting second-quarter adjusted earnings per share of $3.53, below estimates of $3.76, and slashing its full-year EPS outlook to $10.94-$11.94 from a prior forecast of $13.27-$14.27.

Executive chair Ed Stack told analysts on the earnings call that the athletic footwear market is going through a "hangover," with brands including Nike, Adidas, On and HOKA all resetting their lineups. Nike is taking aggressive markdowns to clear slow-moving product, which Jefferies analyst Jonathan Matuszewski said is sparking a "domino effect of pricing pressure."

The shock could signal more pain ahead for Nike, whose fiscal fourth-quarter revenue of $11 billion fell 1% on a reported basis. Nike's stock has crashed about 78% from its 2021 all-time high and lost 38% this year alone.

Source link

4. US Inflation Stays Hot at 3.7% as September Rate-Hike Odds Rise to 40%

Source: Yahoo Finance

The Personal Consumption Expenditures price index rose 3.7% in the 12 months through July, unchanged from June and above economists' forecast of 3.6%, marking the 65th straight month above the Federal Reserve's 2% target. Core PCE, which excludes food and energy, held steady at 3.3%.

Consumer spending decelerated modestly last month while personal incomes rose faster than inflation, and durable goods orders rebounded as businesses kept investing in artificial intelligence. Economists said the data point to accelerating growth, with Nationwide chief economist Kathy Bostjancic expecting third-quarter real GDP growth of at least 3%, double the second quarter's 1.5%.

The hotter-than-expected print nudged up rate-hike expectations, with fed funds futures implying roughly a 40% probability of a hike at the Fed's September 15-16 meeting, up from about 36% beforehand. The data landed two days before Fed Chair Kevin Warsh delivers his debut keynote at Jackson Hole.

Source link

5. Dollar and Bond Markets 'on Edge' as Jackson Hole Gets Underway

Source: CNBC

The Kansas City Fed's annual economic symposium opens in Jackson Hole on Thursday, with Fed Chair Kevin Warsh due to deliver his keynote speech Friday. Markets are watching closely after long-term borrowing costs hit a near-two-decade high last week and the Treasury unveiled its bond market intervention.

Last week the Treasury said it would at least double the maximum size of its long-term debt buybacks to $4 billion starting September 9, a move some investors read as an effort to lower government bond yields. The 30-year Treasury yield had earlier surged to a 19-year high amid concerns about inflation and the fiscal deficit, but Treasury Secretary Scott Bessent's plan drew criticism from some market watchers.

Bank of America FX strategists said the dollar is "on edge," vulnerable to a further sell-off if Warsh disappoints. As of Wednesday morning, the 30-year Treasury yield stood at 5.173% and the 10-year at about 4.64%.

Source link

6. Canada Unveils Retaliatory Tariff Details on About $20 Billion of US Goods

Source: Xinhua Finance (eeo.com.cn)

Canada's federal government announced on the 25th the specific measures for equal-value retaliatory tariffs on US goods, set to take effect on September 8. Canadian officials said the retaliatory tariffs cover roughly $20 billion worth of US goods, matching the value of goods hit by Washington's 50% tariffs on Canada.

According to the finance ministry's list, the tariffs focus on steel and aluminum, dairy, home appliances, agricultural equipment, pulp and paper, plastics and electronics, with rates of 15%, 25% and 50%. Most US steel and aluminum products will see import duties rise from 25% to 50%, while cheese and other dairy, fish, seafood and some steel and aluminum derivatives face 25%.

Analysts say the tariffs are targeted and strategic, aimed at pressuring key US midterm election districts. Former Vice President Mike Pence said publicly that "the last thing we need right now is a trade war with Canada."

Source link

7. Oil Falls for a Third Day as Geopolitics Whipsaws Markets

Source: NBC News

Crude oil prices dropped for a third straight day Wednesday, with US crude falling as low as $79 a barrel early in the day for the first time since August 13 and international benchmark Brent slipping to around $85. But prices made an unexpected midday U-turn higher on reports that Russian President Vladimir Putin plans to escalate the war in Ukraine, before ending slightly lower at $82.23 for US crude and $87.84 for Brent.

The downward pressure came largely from easing Middle East tensions: reports of renewed Iran-Oman talks over reopening the Strait of Hormuz, US preparations to return diplomats to embassies across the region, and Secretary of State Marco Rubio's signal that the Trump administration does not expect to resume strikes on Iran. Shipping analytics firm Kpler said just five vessels transited the Strait on Tuesday, a fraction of the pre-war daily average of 130.

The whipsawing energy market also rippled through bonds and mortgages, with the 10-year Treasury yield easing to around 4.6% and the 30-year fixed mortgage rate slipping to 6.74%. US consumers still face pressure at the pump, with the national average gasoline price rising to $4.10 a gallon.

Source link

8. US Mortgage Rates Hit a Three-Week High, Further Weakening Demand

Source: CNBC

Mortgage rates moved higher again last week, weighing further on loan demand, according to the Mortgage Bankers Association. Total mortgage application volume dropped 1% from the prior week, and the average contract rate for 30-year fixed-rate mortgages with conforming loan balances up to $832,750 rose to 6.78% from 6.77% the prior week — the highest level in three weeks.

Refinance applications, the most sensitive to weekly rate moves, fell 2% for the week and were 17% lower than a year ago. Joel Kan, MBA vice president and deputy chief economist, said the average refinance loan size was at its lowest since June 2025. Purchase applications slipped 0.3% on the week and 5% from a year earlier.

Rates have eased this week, however. According to Mortgage News Daily, rates dropped Tuesday as falling oil prices dragged bond yields lower, with chief operating officer Matthew Graham noting that bond yields correlate closely with mortgage rates.

Source link

9. SpaceX Unveils $100 Billion Louisiana Launch Site Expected to Create Thousands of Jobs

Source: Fox Business

SpaceX announced Tuesday it plans to build its largest rocket launch site in southern Louisiana, investing $100 billion in a complex that could ultimately support thousands of Starship flights each year. The 125,000-acre site on Pecan Island in Vermilion Parish, called Starbase Louisiana, would become SpaceX's fourth US launch location.

The project is expected to create more than 3,000 jobs, with CEO Elon Musk saying the company could eventually bring "probably 10,000 really exciting jobs" to Louisiana. Construction is slated to begin in 2027 and the first Starship launch is planned for 2029, with the complex including launch pads, vehicle processing facilities, methane fuel production and power generation.

Louisiana Governor Jeff Landry called it "a day for the history books." The project moved forward after Louisiana settled a lawsuit against ExxonMobil over wetland loss, clearing the way for development of the 18-mile coastal property. Musk views Starship as key to expanding the Starlink network and central to NASA's Artemis moon mission.

Source link

10. Anthropic Could IPO as Soon as October, With a $30 Trillion Revenue Pitch

Source: Yahoo Finance

According to a Wall Street Journal report, AI company Anthropic has filed confidentially for a potential IPO as soon as October, and may pitch investors on potential revenue opportunities above $30 trillion. Anthropic is the developer of the Claude chatbot.

Jim Neesen, managing partner at Connor Group, argued the revenue estimate is not empty talk: "If you look at their revenue growth, $65 billion is their run rate. They were $9 billion last year. That's a sevenfold increase." Connor Group has advised on 275 IPOs worth more than $4 trillion.

The US IPO market has been booming this year, with PwC data showing traditional IPOs raised about $114.1 billion in the second quarter — more than seven times the same period in 2025 — boosted by SpaceX's debut. Neesen added that investors are likely to be patient with Anthropic's and OpenAI's profit timelines, and that Anthropic is "a lot closer to that profitability piece."

Source link