– This is the script of CNBC's financial news report for China's CCTV on August 28, 2025.
On Wednesday local time, the S&P 500 closed at a new high for the 19th time this year. A major focus for the market was Nvidia, which accounts for about 8% of the index's weight, as it released its quarterly earnings after the bell. Let's first take a look at the broader market performance.
Overnight, the Dow Jones Industrial Average rose more than 0.3%, marking its second-highest close in history. The S&P 500 and the tech-heavy Nasdaq Composite each gained about 0.2%.
Terry Sandven, chief equity strategist at U.S. Bank, told CNBC that markets broadly expect U.S. interest rates to move into a downward cycle while corporate earnings remain strong, both of which have fueled optimism among investors.
Wall Street currently has high expectations for Nvidia. The company is not only viewed as a bellwether for the broader market, but also as a key barometer of artificial intelligence development. Especially after last week's sell-off in U.S. tech stocks, many are hoping Nvidia's results can help revive market sentiment.
According to data from financial provider FactSet, Nvidia has beaten earnings expectations in 11 of its past 12 quarters, but in four of those cases, the stock still declined after the reports.
That was the case overnight. Although both revenue and profit exceeded expectations, the stock still slipped in after-hours trading. Beyond the weaker-than-expected data center revenue mentioned earlier, another concern among market watchers is Nvidia's high customer concentration.
Chris Rolland
Senior Analyst
Susquehanna International Group
"We've been combing through the 10 Q, and we found that there was a 23% customer. So someone is buying almost a quarter of Nvidia's entire revenue, which is going to be very interesting to dig into who that is."
From a broader perspective, Nvidia CEO Jensen Huang said revenue from AI startups is expected to climb from around $20 billion this year to $200 billion next year. He noted that the rise of open-source models is accelerating AI adoption across industries including large enterprises and robotics.
Another market move worth noting overnight was the divergence in international gold prices. Spot and futures showed mixed performance under the influence of multiple factors.
Overnight, spot gold prices came under pressure from a slightly stronger dollar, edging down about 0.1%.
However, concerns over the Federal Reserve's independence sustained safe-haven demand, which pushed up gold futures.
Analysts pointed out that the driver of the next wave of U.S. stock market volatility is shifting from artificial intelligence to the Federal Reserve. Investors are now closely watching U.S. GDP data to be released on Thursday local time, as well as Friday's personal consumption expenditures (PCE) data — the Fed's preferred inflation gauge. We will continue to keep a close eye on these developments.