With the S&P 500 on the cusp of hitting an all-time high, markets are gearing up for the final trading week of August and key factors will be under scrutiny.
Nvidia’s earnings report is anticipated to be a major market driver. The tech giant, a significant player in the S&P 500 and critical to tech and semiconductor ETFs, will report results this week.
“It’s not often you can tout that one company is the most important stock in the market, but it is not a stretch here,” writes Jay Woods, chief global strategist in his recent newsletter.
“Given that it’s the last of the ‘Magnificent 7’ to report and it has so much of a weighting in the most important sectors in the world, it’s impact could cause tremors in the entire market.”
Woods is keenly watching for any updates on potential delays in its new Blackwell AI chip and the impact on future earnings. Rumors surfaced suggesting that Blackwell could be delayed by three months or more, sparking concern about the impact on major hyperscalers’ AI initiatives.
For data center operators, the significance of this delay is notable because Blackwell is anticipated to drive widespread adoption of direct-to-chip liquid cooling technology.
Historically, Nvidia’s earnings reports have led to notable stock movements, and this one could set the tone for broader market trends, Woods noted.
Economic data will also be a focal point, particularly the Core PCE inflation gauge, which the Federal Reserve closely monitors. Jerome Powell’s recent comments underscore the Fed’s data-dependent stance, making this inflation reading crucial for market expectations regarding future rate cuts.
Additionally, earnings reports from Salesforce, CrowdStrike, and Ulta Beauty are expected to capture investor attention, each presenting their own set of technical and fundamental challenges.
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