NVIDIA Earnings Take Center Stage Amid Market Uncertainty

Dow Jones, Nasdaq, S&P 500 weekly preview: Nvidia earnings to take center stage By Investing.com

U.S. stocks climbed on Friday after Federal Reserve Chair Jerome Powell hinted that interest rate cuts are on the horizon. The Dow Jones Industrial Average rose by 462.30 points, or 1.14%, reaching 41,175.08. The Nasdaq Composite saw a 1.47% increase, closing at 17,877.79, while the S&P 500 gained 1.15%, ending the day at 5,634.61 -- just shy of the all-time highs reached last month. Friday's performance also capped off a winning week for all three major indexes. The Dow advanced nearly 1.3%, the Nasdaq gained 1.4%, and the S&P 500 climbed 1.45%. The markets received a boost Friday morning following Powell's remarks at Jackson Hole, Wyoming, where he signaled potential reductions in interest rates. However, he stopped short of detailing the timing or scale of any future rate cuts. This week, the durable goods report is set to be released on Monday, and the core PCE inflation report on Friday. This data comes ahead of a busy period after Labor Day. Economists at JPMorgan (NYSE:JPM), anticipate that the core PCE figure will show a 0.12% month-over-month increase. This projection, based on existing data from the CPI, PPI, and import price index, is expected to keep the year-over-year rate steady at 2.6% for the third consecutive month. However, on a three-month annualized basis, prices would be up only 1.6%. "Recent FOMC communication indicates the Fed's focus has shifted toward labor market risks and that inflation is close enough to target to facilitate cutting rates starting in September," economists said. "We also forecast the headline index rose 0.1%m/m." Nvidia to release its much-anticipated earnings Apart from the two reports related to the U.S. economy, much of investors' focus this week will be directed at the upcoming Nvidia earnings. The chipmaker, seen as the vanguard of the ongoing AI revolution, will report financial results for fiscal Q2 2025 after the market closes on Wednesday. The market expects NVIDIA Corporation (NASDAQ:NVDA) to report quarterly results ahead of consensus estimates, but the primary focus will likely be on the company's guidance, as investors remain skeptical about the sustainability of AI adoption. Investors will also be closely watching for any updates from management on potential delays in the launch of the next-generation Blackwell chip. According to supply chain checks, performance issues have led to a chip respin involving the Blackwell tile, resulting in a one-quarter delay. However, KeyBanc Capital Markets analysts recently said that this "is not expected to have any impact to near-term results and guidance." "We believe modest expectations for Blackwell shipments in FQ3 have been backfilled with higher Hopper bookings," they noted. Citi: "The S&P 500 has now mostly round tripped the mid-July to early August drawdown and is hovering near our 5600 year-end target. With the index PE back to 23x trailing, we suggest a balanced risk/reward in the shorter term. Generally, Q2 results were a "beat and hold" as we expected. Q2 upside was balanced with some downside to 2H expectations." Deutsche Bank (ETR:DBKGn): "Inflows to equity funds ($20.4bn) rose to the highest in a month, stretching the current streak to an 18th straight week, with total inflows of almost $250bn over this period. These strong inflows are especially notable in a period of typically weak seasonality. In our reading, the risk appetite evident in equity inflows remains very strong, pointing to likely occasional pullbacks on late cycle concerns, and domestic or international political escalations, but also sharp buy-the-dip rallies." Jefferies: "Risky assets are back to highs after wobble in early August. The early August move was driven by positioning and technicals, hence was a fade. Market was very long equities towards end July and hence the reaction to weaker employment numbers was exaggerated. However, we are keeping our risk positions small for now while keeping a medium term bullish view."

Futures little changed, rate cut hopes and Nvida earnings - what's moving markets By Investing.com

Investing.com -- Wall Street is seen trading in tight ranges Monday at the start of a week which will bring Nvidia (NASDAQ:NVDA) earnings and inflation data that will likely cement expectations for September rate cuts. U.S. stock futures were little changed on Monday as markets hovered near record highs after the Federal Reserve gave a clear signal that the long-awaited start of rate cuts would come next month. By 03:48 ET (07:48 GMT), the Dow futures contract and the S&P 500 futures were both flat, while Nasdaq 100 futures rose by 35 points, or 0.1%. Markets are coming off a strong week with the S&P 500's Friday close putting the benchmark index less than 1% away from its all time high reached in mid July. The three main indexes rallied after Fed Chair Jerome Powell that "the time has come" to lower the Fed funds target rate, and "the upside risks of inflation have diminished." The remarks appeared to all but guarantee a rate cut at the Fed's September 18 meeting, which would be the first such cut in over four years. This week the data-dependent Fed will have a raft of economic indicators to consider ahead of its September rate decision, including the Commerce Department's revised second-quarter GDP and its broad-ranging Personal Consumption Expenditures (PCE) report, which includes the Fed's preferred inflation yardstick, the PCE price index. Friday's PCE data will be closely watched though recent remarks by Fed policymakers have indicated that the Fed's focus has shifted toward labor market risks and that inflation is close enough to target to facilitate cutting rates starting next month. The economic calendar also includes a report on durable goods orders later Monday along with the weekly report on initial jobless claims on Thursday. The rally in U.S. markets will face a test when AI-darling Nvidia reports earnings after the close on Wednesday. Nvidia stock is up some 150% year-to-date, accounting for around a quarter of the S&P 500's 17% year-to-date gain. But the stunning, multi-year run and AI-mania have also drawn comparisons to the dot-com craze that imploded more than two decades ago. The earnings report along with guidance on whether it expects corporate investments in AI to continue, could be a key inflection point for market sentiment heading into what is historically a volatile time of the year. The results come at the end of an earnings season during which investors have taken a less forgiving view of big tech companies whose earnings failed to justify rich valuations or prodigious spending on AI. Oil prices pushed higher on Monday amid concerns that any potential widening of the conflict in the Middle East could disrupt regional oil supplies, while the prospect of imminent U.S. rate cuts boosted the global economic and fuel demand outlook. Brent crude futures climbed 74 cents, or 0.9%, to $78.89 a barrel by 03:48 ET (07:48 GMT) while U.S. crude futures were at $75.62 a barrel, up 75 cents, or 1.0%. Both oil benchmarks gained more than 2% on Friday as expectations for September rate cuts by the Fed solidified. But oil prices still ended last week lower as a poor outlook for major economies weighed on fuel demand. Oil traders also remain cautious over plans by the Organization of Petroleum Exporting Countries (OPEC) and its allies, or OPEC+, to raise output later this year. NASA announced Saturday that it's too risky to bring two astronauts stranded aboard the International Space Station back home in Boeing's faulty new capsule and they will now return home in a SpaceX craft in early-2025. Astronauts Butch Wilmore and Sunita Williams were stranded aboard the ISS in June after Boeing's Starliner capsule seemingly malfunctioned during a test flight. The flight was initially planned to last a minimum of nine days but was delayed indefinitely as the agency raced to identify what went wrong with the Starliner. NASA's decision to proceed with SpaceX marks more trouble for Boeing (NYSE:BA), which was already facing heightened scrutiny over the safety standards of its commercial aircrafts. SpaceX has contract with NASA to supply cargo to the ISS, and has completed nine successful missions to and from the ISS, as of April 2024.