Nvidia's Earnings Report Takes Center Stage Amid Market Concerns Over U.S. Debt and AI Momentum

Wall Street on edge this week: Will Nvidia's earnings revive markets or fuel chaos amid soaring U.S. Debt?

Wall Street braces for a critical week as Nvidia gears up to report earnings, with its results seen as a potential market mover amid AI hype. But as soaring U.S. debt and rising Treasury yields stoke investor anxiety, can this chipmaker steady the storm?The upcoming week on Wall Street is poised to revolve around a pivotal earnings announcement from Nvidia, the global semiconductor leader, even as investors remain wary of ballooning U.S. debt and surging Treasury yields that have rattled broader market sentiment. The focus will squarely be on Nvidia, with its quarterly earnings scheduled for release on Wednesday. As the last of the so-called "Magnificent Seven" technology giants to report this cycle, the chipmaker's performance is being closely watched due to its outsized role in the artificial intelligence (AI) boom. "All eyes are going to be on Nvidia's report," said Chuck Carlson, Chief Executive Officer at Horizon Investment Services, as quoted in a report by Reuters. "The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme." Analyst projections compiled by LSEG estimate Nvidia's first-quarter earnings to have surged by around 45%, with revenue expected to touch $43.2 billion. The company's financial health is being seen not only as a reflection of AI momentum but also as a bellwether for broader investor sentiment. While tech earnings draw investor attention, economic undercurrents linked to government spending and debt are beginning to take center stage. The U.S. share market retreated this week amid heightened concern over fiscal policy. The yield on the 30-year Treasury note breached the 5% mark, its highest level since 2023, signaling investor anxiety over federal borrowing. The U.S. House of Representatives, now under Republican control, recently passed a major tax and spending bill in line with President Donald Trump's economic agenda. The proposed legislation could expand federal debt by approximately $3.8 trillion over the next decade. This development contributed to a downgrade of the U.S. sovereign credit rating by Moody's. "From an investment perspective, higher interest rates now represent more competition for equities," noted Carlson. "If this trend persists, we could see more pressure on stock valuations." Markets were further unsettled on Friday after U.S. President Donald Trump threatened to levy a 50% tariff on European Union imports beginning June 1. He also warned of a potential 25% tariff on Apple if iPhones sold in the U.S. are not manufactured domestically. These remarks sparked renewed concerns over trade tensions and their impact on global supply chains. Nvidia could be particularly affected, with the company already having taken a $5.5 billion charge in anticipation of lost revenue following Washington's ban on exporting its H20 AI chip to China. Despite a strong rally earlier in the year, the S&P 500 is now down over 5.6% from its record high in February and 1.3% lower for 2025 overall. Still, Nvidia's earnings report is widely viewed as a potential catalyst. "If Nvidia delivers strong numbers and guidance, it could reignite optimism around AI investments," said Art Hogan, Chief Market Strategist at B Riley Wealth. As such, this week's developments are set to offer critical signals for the direction of the US share market, with Nvidia's results at the core of investor expectations. Nvidia is set to release its quarterly earnings on Wednesday, and as the last of the "Magnificent Seven" tech giants to report, its results are seen as a key indicator of both AI sector momentum and broader market sentiment. Analysts estimate that Nvidia's earnings have jumped by about 45%, with revenue expected to reach around $43.2 billion, driven largely by its central role in the artificial intelligence boom.

Wall Street Week Ahead: Nvidia earnings in focus as rising US yields, debt rattle markets

Wall Street anticipates Nvidia's earnings report amid concerns over rising Treasury yields driven by federal deficits. U.S. equities experienced a pullback as investors reacted to tax and spending legislation. Nvidia's results are expected to reflect a significant jump in earnings and revenue, potentially reigniting enthusiasm for AI-related investments, while U.S.-China relations and trade developments remain a key focus.An earnings report from semiconductor giant and artificial intelligence bellwether Nvidia takes center stage for Wall Street in the coming week, as stocks hit a speed bump of worries over federal deficits driving up Treasury yields. U.S. equities have pulled back this week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the U.S. government's $36 trillion in debt. Long-dated U.S. Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5% and hitting its highest level since late 2023. Focus will shift to Wednesday's quarterly results from Nvidia, one of the world's largest companies by market value whose stock is a major influence on benchmark equity indexes. "All eyes are going to be on Nvidia's report," said Chuck Carlson, CEO of Horizon Investment Services. "The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme." Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. Nvidia shares are down 1% this year after soaring over 1,000% from late 2022 through the end of 2024 as its AI chip business spurred massive increases in revenue and profits. Nvidia's first-quarter earnings likely jumped about 45% on revenue of $43.2 billion, analysts estimated in an LSEG poll. After big tech companies earlier in the quarter signaled robust AI-related spending, Nvidia can deliver a strong message about AI and how companies' spending plans are faring, said Art Hogan, chief market strategist at B Riley Wealth. "Nvidia can reinvigorate the enthusiasm for that theme." Nvidia, popular among smaller retail shareholders, is an investor sentiment indicator, said Wasif Latif, chief investment officer at Sarmaya Partners. "Given its sheer size and attention that it is commanding, there are going to be a lot of people looking for what happens with the stock," Latif said. U.S.-China relations could also be in focus with Nvidia's report. The company said last month it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China. Trade developments have whipsawed the stock market this year, especially after U.S. President Donald Trump's April 2 announcement of sweeping tariffs on imports globally set off extreme asset price volatility. Since then, Trump's easing of tariffs, especially a U.S.-China truce, has helped equities rebound. The benchmark S&P 500 index ended on Thursday down less than 1% for 2025, and down about 5% from its February record high. Investors shifted attention this week to the fallout from Trump's fiscal plans, especially after Moody's downgraded the U.S. sovereign credit rating due to concerns about the nation's growing debt pile. The U.S. House of Representatives, controlled by Trump's Republican party, on Thursday narrowly passed a tax and spending bill that would enact much of his agenda while adding an estimated $3.8 trillion to the debt over the next decade. The bill is heading to the U.S. Senate for its review. Long-dated government bond yields have been rising globally amid a selloff. In the U.S., benchmark 10-year Treasury yields this week hit their highest since February. Bond prices move opposite to yields. Higher yields can diminish the appeal of stocks as they represent higher borrowing costs for companies and consumers, while making fixed income assets relatively more attractive. "The biggest concern from an investment standpoint is that higher rates represent more competition for equities," said Horizon's Carlson. "If rates continue to move higher, that is going to put increasing amounts of pressure on where investors are putting their money." (Reporting by Lewis Krauskopf; Editing by Richard Chang)

Nvidia earnings in focus as rising US yields, debt rattle markets

NEW YORK (Reuters) -An earnings report from semiconductor giant and artificial intelligence bellwether Nvidia takes center stage for Wall Street in the coming week, as stocks hit a speed bump of worries over federal deficits driving up Treasury yields. U.S. equities have pulled back this week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the U.S. government's $36 trillion in debt. Long-dated U.S. Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5% and hitting its highest level since late 2023. Focus will shift to Wednesday's quarterly results from Nvidia, one of the world's largest companies by market value whose stock is a major influence on benchmark equity indexes. "All eyes are going to be on Nvidia's report," said Chuck Carlson, CEO of Horizon Investment Services. "The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme." Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years. Nvidia shares are down 1% this year after soaring over 1,000% from late 2022 through the end of 2024 as its AI chip business spurred massive increases in revenue and profits. Nvidia's first-quarter earnings likely jumped about 45% on revenue of $43.2 billion, analysts estimated in an LSEG poll. After big tech companies earlier in the quarter signaled robust AI-related spending, Nvidia can deliver a strong message about AI and how companies' spending plans are faring, said Art Hogan, chief market strategist at B Riley Wealth. "Nvidia can reinvigorate the enthusiasm for that theme." Nvidia, popular among smaller retail shareholders, is an investor sentiment indicator, said Wasif Latif, chief investment officer at Sarmaya Partners. "Given its sheer size and attention that it is commanding, there are going to be a lot of people looking for what happens with the stock," Latif said. U.S.-China relations could also be in focus with Nvidia's report. The company said last month it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China. Trade developments have whipsawed the stock market this year, especially after U.S. President Donald Trump's April 2 announcement of sweeping tariffs on imports globally set off extreme asset price volatility. Since then, Trump's easing of tariffs, especially a U.S.-China truce, has helped equities rebound. The benchmark S&P 500 index ended on Thursday down less than 1% for 2025, and down about 5% from its February record high. Investors shifted attention this week to the fallout from Trump's fiscal plans, especially after Moody's downgraded the U.S. sovereign credit rating due to concerns about the nation's growing debt pile. The U.S. House of Representatives, controlled by Trump's Republican party, on Thursday narrowly passed a tax and spending bill that would enact much of his agenda while adding an estimated $3.8 trillion to the debt over the next decade. The bill is heading to the U.S. Senate for its review. Long-dated government bond yields have been rising globally amid a selloff. In the U.S., benchmark 10-year Treasury yields this week hit their highest since February. Bond prices move opposite to yields. Higher yields can diminish the appeal of stocks as they represent higher borrowing costs for companies and consumers, while making fixed income assets relatively more attractive. "The biggest concern from an investment standpoint is that higher rates represent more competition for equities," said Horizon's Carlson. "If rates continue to move higher, that is going to put increasing amounts of pressure on where investors are putting their money." (Reporting by Lewis Krauskopf; Editing by Richard Chang)