Support
GDP revision and AI optimism drive U.S. markets higher
A stronger second estimate of U.S. GDP and softer jobless claims helped lift U.S. equities back toward record highs. Investors now await the PCE Price Index for clarity on the Fed’s next steps, while surging AI demand continues to underpin tech sentiment.
U.S. GDP grew 3.3% in Q2, boosted by business investment; jobless claims eased
Global equities advanced on optimism over AI-linked revenues
Snowflake beat estimates and raised guidance on stronger data-platform demand
Fresh U.S. highs on stronger data
The second estimate of U.S. Q2 GDP was revised up to 3.3% QoQ annualized, from 3.0% previously, beating consensus. The upward revision was driven in part by firmer business spending tied to artificial intelligence investments. Initial jobless claims fell to 229,000, slightly better than expectations of 230,000.
The S&P 500 rose 0.32%, the Dow Jones gained 0.16%, and both notched fresh record highs. The Nasdaq added 0.58%, ending just shy of its all-time peak. Even with supportive data, investors remain focused on Friday’s PCE inflation release to refine expectations for the Federal Reserve’s September policy path.
Global equities rise on tech momentum
Global benchmarks also moved higher on optimism over technology and AI growth. Nvidia delivered stronger-than-expected results and raised its Q3 outlook, while Snowflake posted robust demand for its data platform and upgraded full-year guidance.
At the close: CAC 40 +0.24%, IBEX 35 +0.34% (near records), China A50 +0.86%. In Latin America, Brazil’s Bovespa gained 1.32% and Mexico’s IPC added 0.86%. Though not all these indices are tech-heavy, sentiment from Nvidia and Snowflake supported the global rally.
Snowflake surges on AI-driven growth
Snowflake reported 32% YoY revenue growth, beating estimates on both sales and EPS. Demand for its data platform tied to AI projects accelerated, prompting management to raise 2025 product revenue guidance to $4.4 billion, above prior forecasts.
Shares jumped 20.27% into the close, reclaiming three-year highs and reinforcing the bullish narrative around data infrastructure as a critical enabler of AI expansion.
