Markets were carried higher by the technology sector after earnings from both Nvidia (NVDA) and CrowdStrike (CRWD).
Below are highlights from the NDW Morning Update Video for the morning of 08/28. Access the video on the NDW Morning Update Video page.
- Big tech was lifted higher after positive news from Nvidia (more on that later), as the Nasdaq-100 (NDX) rose 1.4% on the day. That said, breadth was limited to technology for the most part, as the Technology Select Sector SPDR ETF (XLK) was the lone major sector SPDR fund to rise on the day.
- NVDA reported earnings on Wednesday evening, allowing the stock to rise 8.7% on Thursday. The 3 for 5’er completed a bullish catapult at $228, triggering its second consecutive buy signal. NVDA is now just 3-4% away from its highs from earlier this year.
- Within the broader technology sector, it was software, not semiconductors, that led the way to the upside. The VanEck Semiconductor ETF rose over 3%, but the iShares North American Tech-Software ETF (IGV) stole the show, rising more than 7.7%—its strongest single-day gain since the Tariff Tantrum bottom in 2025. The group was helped by blowout earnings from CrowdStrike (CRWD), which rose over 20% on the day.
- For the sixth week in a row, there were more bearish than bullish respondents in AAII’s sentiment survey (AAIISPREAD). In fact, 44.4% of respondents thought the market would move lower over the next six months (AAIIBEARS), which is the most bearish the market has been since the start of June. Thankfully, bearish sentiment has historically been associated with stronger market returns.
- Participation within small and mid caps has waned recently. The bullish percents for the S&P Midcap 400 (BPSPMID) and S&P Smallcap 600 (BPSPSML) have dropped around 15% each over the last couple weeks, leaving them right above the 50% level. While their participation has weakened, both indicators remain in a normal range
