Nvidia shares surged 8.7% after the company forecast 70% revenue growth for the next fiscal year, far exceeding analyst expectations of 45%. CEO Jensen Huang attributed the strong performance to robust demand but noted supply constraints are limiting even faster growth. He also pushed back against Bill Gates' warnings about AI job losses, calling AI a 'net job creator' on a massive scale.

In other tech news, Salesforce jumped 23% following a partnership with AI firm Anthropic, boosting investor confidence in its AI integration. Software stocks like Crowdstrike and Okta also rallied, lifting the broader market with the S&P 500 up 0.7%.

On the macroeconomic front, Boston Fed President Susan Collins hinted she could support rate hikes if inflation data doesn't improve. Her comments come as Treasury Secretary Janet Yellen's growing influence over economic policy raises concerns about central bank independence, a key topic at the Kansas City Fed's annual symposium in Jackson Hole.