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What Happened in Markets Today

Nvidia shares soared after blockbuster earnings. Chief Financial Officer Colette Kress, on a Wednesday conference call, said to expect 70% revenue growth in the company's next fiscal year. That was significantly better than the 45% growth that analysts polled by FactSet had predicted. Chief Executive Jensen Huang said the company would be growing even faster if not for supply constraints. Nvidia ended Thursday up 8.7%.

Nvidia's Huang also responded to Bill Gates' AI warnings. Huang took issue with Gates' prediction that AI would create rising job losses, requiring a stronger safety net. "Overall, this is going to be a net job creator at a scale that we have never seen," he said in an interview with Fox Business News. "I love the heck out of Bill, but I don't see what he sees."

Salesforce boosted software stocks. The enterprise software leader jumped 23% after striking a partnership deal with Anthropic, boosting investor confidence in its ability to integrate AI into its software. Other software names rallied, including Crowdstrike and Okta. Stocks overall were higher, with the S&P 500 rising 0.7%.

A Fed official indicated that rate hikes could be needed. Boston Fed President Susan Collins, who has spent months in the committee's cautious center said she could support raising interest rates at an upcoming meeting if incoming data show inflation isn't declining. Collins doesn't vote on rate decisions this year but participates in the Fed's policy deliberations

Markets at a Glance

One Big Story

Federal Reserve Chairman Kevin Warsh takes the stage here Friday with an unusual presence looming over him: a Treasury secretary stepping closer to terrain long treated as the Fed's.

The overlap figures to be among the most discussed subjects among central bankers on the sidelines of the Kansas City Fed's annual symposium. Pushed far enough, it risks blurring the line between the central bank and the administration. The Fed sets policy to manage inflation and employment, not to make it easier for the government to fund itself.

What's Coming Up

All eyes on Friday will be on Fed Chairman Kevin Warsh's Jackson Hole address, expected at 10am Eastern time.

There will also be readings from the Chicago Business Barometer and the Michigan Consumer Sentiment Survey.

Be prepared for the trading day ahead-sign up for Markets A.M.

About Us

Markets P.M. catches you up on the day's most important markets moves, delivered after the closing bell. This email was written by Aaron Back, Editor of Heard on the Street, The Wall Street Journal's home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here's how to submit.