US stocks staged a powerful rally on Thursday, August 7, 2025, with the Nasdaq Composite leading the charge, fueled by a record-setting performance from Nvidia. The technology sector spearheaded the advance, and widespread investor optimism followed renewed hopes for Federal Reserve interest rate cuts and a stunning rebound after last week’s market turbulence.
Major Indexes Surge
Nasdaq Composite: Jumped nearly 2%, powered by major technology shares and reaching fresh all-time highs.
S&P 500: Gained about 1.5%, closing at 6,395 points—up 0.79% from the previous session.
Dow Jones Industrial Average: Rose by around 1.3%, equivalent to a gain of almost 600 points.
This marked the best day for US stocks in months, with nearly all sectors finishing in positive territory—especially technology, communication services, and utilities. Only the energy sector lagged behind.
Nvidia Leads Tech Surge
The standout performer was Nvidia (NVDA), whose shares soared 3–3.6% to close at an all-time high, propelling the company to a market capitalization exceeding $4trillion. Nvidia remains the world’s largest publicly traded company and continues to see soaring demand for its data center and AI chips.
Other tech giants also notched new highs:
Meta Platforms: Gained 3.5% and closed at a record level.
Alphabet: Rose by 3%.
Microsoft: Increased 2.2%, setting another record closing price.
The broader rally extended to other companies benefitting from the AI and technology boom, with Apple surging over 2% and Palantir continuing its remarkable year-to-date performance.
Why Did the Market Rebound?
The dramatic turnaround comes after last week’s sell-off, which followed disappointing jobs data. This week’s sluggish July employment report—showing only 73,000 jobs added and previous months sharply revised down—shifted sentiment, making traders more confident the Fed will cut interest rates, possibly as early as September. Analysts estimate the probability of a September rate cut at 85%.
Additional factors bolstering the recovery include:
Strong earnings: More than 80% of S&P 500 companies have beaten expectations so far this quarter.
Weaker dollar and Treasury yields: Lower overall yields and a softening dollar provided further support for stocks.
Political drama: President Trump’s firing of the Bureau of Labor Statistics commissioner and calls for a new Fed chief have added intrigue to the monetary policy outlook but haven’t derailed market optimism.
Broad-Based Gains, Sector Leaders
Almost all Dow stocks closed in the green; the exceptions were Chevron (energy) and Amazon, which declined 1.44%.
The “Magnificent Seven” tech stocks drove gains among the Nasdaq 100, lifting the entire sector.
Utilities and AI-related sectors (including cannabis stocks and disruptive tech ETFs) also saw notable advances.
Among S&P 500 standouts, companies like IDEXX Laboratories (IDXX) surged after blowout earnings.
Outlook
This rebound reflects revived confidence in equities, especially as market participants anticipate easier monetary policy and continued strength in the technology sector. Eyes are now on upcoming economic data and the Federal Reserve’s response—while Nvidia’s August 27 earnings report is expected to be another major market catalyst, given the company’s pivotal role in the ongoing AI boom.
For now, Wall Street is celebrating a broad and powerful comeback, led by the AI chip giant Nvidia—and signaling renewed enthusiasm for US stocks as the summer rally gains steam.