Read five straight papers in one sitting and the week tells a single story. The machines earned their keep — and the bills for the whole project started arriving.
The machines delivered
Nvidia posted record quarterly sales of $96.2 billion and net income of $59.7 billion. Its finance chief expects 70% revenue growth in the fiscal year ending January 2028. The stock jumped 8.7% Thursday, adding $442 billion of market value in one day.
The software side chimed in. Salesforce rose 23% after strong results and a raised forecast. CrowdStrike gained 21% and Okta 29%. The IMF estimates the AI frenzy accounts for roughly a third of recent U.S. economic growth.
Even the fine print was big. Nvidia’s commitments to its suppliers reached $279 billion, more than double the prior quarter’s $119 billion. The buildout is not slowing. It is compounding.
The bills arrived
The 30-year Treasury yield climbed from 5.09% to 5.31% before the Treasury Department stepped in. Secretary Bessent will at least double buybacks of long-term debt to push those yields down. Washington and the bond market are now openly arguing about the price of money.
The argument is global. World debt tops $350 trillion — about 305% of global output — and advanced economies are borrowing $18 trillion this year. France now pays 0.85 percentage points more than Germany to borrow, the widest gap in years.
Inflation refuses to cooperate. July PCE — the inflation gauge the Fed prefers — ran 3.7%, hotter than CPI’s 3.4%. Boston Fed President Collins says a rate hike could be warranted if the data disappoint. Prediction markets put 87% odds on zero cuts in 2026.
The referee speaks last. Fed Chairman Kevin Warsh takes the stage at Jackson Hole on Friday at 10 a.m. Eastern — after these papers went to press. Whatever he says lands on a market already priced for no help.
| Scoreboard | Tue. Aug. 25 close | Thu. Aug. 27 close |
|---|---|---|
| S&P 500 | 7,677.28 | 7,730.99 |
| DJIA | 53,577.40 | 53,569.44 |
| Nasdaq Composite | 26,151.30 | 26,541.35 |
| 10-year Treasury yield | 4.638% | 4.671% |
| VIX | 15.45 | 14.51 |
| Gold | $4,638.10 | $4,609.70 |
The rest of the ledger
Canada set tariffs of up to 50% on about 700 American products, effective September 8. Meanwhile tariff refunds padded retail earnings: $100 million at Abercrombie, $150 million at Kohl’s, about $383 million at Dollar Tree. One-time money, spending like real money.
Health news cut both ways. U.S. life expectancy hit a record 79, with heart-disease death rates down 39% since 2000 and cancer down 31%. And a newly approved pancreatic-cancer drug doubled median survival — 13.2 months versus 6.7 on chemotherapy.
The industry that manages your money kept consolidating. Vanguard agreed to buy custodian Altruist for about $4 billion, and Schwab shares slipped 2.6% on the news. Meta settled with 48 state attorneys general for $18 billion, agreeing to night and school modes on teen accounts.
Even the farm report had news. Wheat closed at its highest level since July 2023, up about 30% from its late-June low, after the International Grains Council cut its production forecast.
The culture pages carried the heaviest item. Dolly Parton died at 80, leaving more than 3,000 songs, a $500 million empire, and 200 million donated children’s books.
One week, one lesson. The machines are winning, and paying for them is getting expensive. Both things are true, and a portfolio has to hold both at once.