All three major US stock indexes closed higher on 27/8. The S&P 500 gained 0.24% to 6,481 points. The Nasdaq Composite and the Dow Jones Industrial Average (DJIA) rose 0.2% and 0.3%, respectively.

8 of the 11 sectors in the S&P 500 ended the session higher, led by energy and information technology. Shares of software company MongoDB surged 38% after raising its profit forecast for this year.

Traders work on the floor of the New York Stock Exchange (NYSE). Photo: Reuters

Traders work on the floor of the New York Stock Exchange (NYSE). Photo: Reuters

Investors awaited the earnings results of chipmaker Nvidia, which were released after the market closed. Nvidia's stock remained virtually flat at the close of trading. With Nvidia's market capitalization representing 8% of the S&P 500, the company's performance significantly impacts many Americans who invest in index funds for retirement.

Other technology and AI stocks saw mixed results. Microsoft rose nearly 1%, while Meta Platforms fell almost 1%. These two companies, along with Alphabet and Amazon, are among Nvidia's largest customers. Recent excitement surrounding AI has fueled a surge in technology stocks.

Investors also monitored President Donald Trump's efforts to remove Federal Reserve (Fed) Governor Lisa Cook. This move is expected to face legal challenges. If successful, Trump would have the opportunity to nominate a replacement who might support his policy stance, potentially threatening the Fed's independence.

"Interest rates are widely expected to fall, while corporate profits tend to rise. Both of these factors support risk appetite," Terry Sandven, chief equity strategist at U.S. Bank Asset Management, told CNBC. Investors are almost certain the Fed will cut its benchmark interest rate at its mid-September meeting.

Ha Thu (Reuters, CNBC)