August 28, 2025

Markets:

Stock futures held steady Thursday, recovering from earlier lows as investors digested Nvidia’s blockbuster earnings and outlook. While the stock traded slightly lower in premarket, Wall Street largely viewed the results as further confirmation that the AI boom is only accelerating.

Analysts wasted no time raising their targets, with JPMorgan, Citi, and Bernstein all calling for even greater upside ahead for Nvidia.

Snowflake added to the AI momentum, surging 13% after blowing past second-quarter expectations.

Markets are riding strong momentum from Wednesday’s session, when the S&P 500 closed at a record on anticipation of Nvidia’s results. For August, the S&P 500 and Nasdaq are each up more than 2%, while the Dow leads with a 3% gain.

Investors also brushed aside political drama around the Fed after President Trump’s attempt to oust Governor Lisa Cook, who plans to fight the move legally.

Next up: Friday’s inflation print. Economists expect the July PCE index to rise 0.2% month-over-month and 2.6% year-over-year.

Portfolio:

The AI cycle is still in its early innings — and NVDA’s report last night proved it. Same with SNOW. Let’s break it down:

Nvidia (NVDA): Stellar earnings, a fresh buyback, and demand that continues to explode. Even without China’s H20 revenues factored in, the guide was robust. Once the dust settles, NVDA looks poised for a run toward $200. Jensen’s remarks summed it up best: “The age of physical AI has arrived” — robotics, industrial automation, and beyond. This is the next major cycle being built in real time.

SPY / QQQ: As long as SPY holds above 645, momentum stays intact with upside targets at 647 and 650. QQQ breakout also tracking well.

Next Week: When full volume and traders return, expect the real chase to begin. Recall what we flagged at the start of August: hedge funds are up just 4.67% YTD versus MSCI World’s +11.19%. The market won’t peak until CTAs turn green — and that chase for performance hasn’t even started yet.

Yes, there will be bumps, but the trend is clear. Many are still calling tops and shorting rallies, but that fuel only powers what has become the most hated rally on Wall Street — and it’s setting up to run straight into winter.