Closing Bell: U.S. Stocks Advance Alongside Nvidia (NVDA) Hugging Face M&A

U.S. stocks rallied Thursday, supported by advances in big tech stocks, as headlines flared about what the Federal Reserve will do this month to tame inflation with interest rates.

The S&P 500 (SPX) rose 1.06%, marking its biggest gain since Aug. 4. Shares of Nvidia (NVDA), the biggest company in the index in market capitalization, rose 1.8% after it said it would acquire open-source AI platform Hugging Face for $12.93 billion. Alphabet (GOOGL) rose 1.6%, Microsoft (MSFT) rose 2.59%, and Amazon.com (AMZN) was up 1.54%. See Half of SPX Stocks Below 50-Day SMA, NVDA Buying Hugging Face for $12.93B

The Dow Jones Industrial Average ($DJI) was up 1.18%. The tech-heavy Nasdaq-100 (NDX) jumped 1.16% and the small-cap Russell 2000 (RUT) rose 0.51%.

Five things to know from Thursday's Markets

U.S. Treasury yields pulled back, and traders grew optimistic that the Fed may leave interest rates unchanged at its meeting later this month. Fed Gov. Christopher Waller said Thursday that cooling inflation could keep him from voting to raise interest rates at the upcoming FOMC meeting, according to reports. He said if inflation "comes in hot," he would consider a rate hike, but "it may not take much acceleration" for him to support a hike. He said August inflation data to be released Sept. 11 will guide his decision on whether to hike or hold interest rates.  See Dovish Fed Comments, MSTR Buying More Bitcoin Lifts Crypto Space

Zscaler (ZS), the cybersecurity company, reported earnings and revenue that came in ahead of estimates. Shares were up roughly 1% in after-market trading. Zscaler reported fourth quarter adjusted earnings of $1.19 per share, beating analyst estimates of $1.08 per share, on revenue of $898.16 million. The consensus for revenue was $877.36 million, according to reports. Read Can Zscaler (ZS) Earnings Save Cybersecurity’s Slump This Week?

Broadcom Inc. (AVGO) shares slumped 2.74% despite reporting a quarterly earnings and revenue beat. But its fourth-quarter revenue guidance slightly missed analyst expectations. AVGO Adds AI Muscle in Earnings, Guidance & GOOGL Concentration Show Risks 

Snowflake Inc. (SNOW) soared, up 16.55%, after reporting second-quarter earnings that beat analyst expectations, driven by surging AI demand.

Tesla Inc. (TSLA) was up 5.42% ahead of its Cybercab launch event.

Angrej Singh and Tom White contributed to this article

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any decisions.

Schwab Network is brought to you by Charles Schwab Media Productions Company (“CSMPC”). CSMPC is a subsidiary of The Charles Schwab Corporation and is not a financial advisor, registered investment advisor, broker-dealer, futures commission merchant or forex dealer member.

Charles Schwab Media Productions Company and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.

Data contained herein is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. All events and times listed are subject to change without notice.