Nvidia's earnings report will have a significant impact on market sentiment

From Investing.com: 2024-08-23 15:27:52

Next week, the U.S. stock rally will face a pivotal test with Nvidia’s earnings report. Nvidia, known for its AI chips, has surged more than 30% recently and is up 150% this year, driving a significant portion of the S&P 500’s gains. The company’s earnings report could impact market sentiment amid September’s historical market volatility. Investors are anticipating a potentially significant 10.3% swing in Nvidia’s shares in response to the report, higher than typical post-earnings movements. Some big tech companies have faced scrutiny for earnings that don’t justify their valuations, such as Microsoft, Tesla, and Alphabet. Nvidia, with a stock surge of 750% since the start of 2023, is now the world’s third most valuable company. Market sentiment will heavily rely on Nvidia’s guidance as an indicator of continued corporate investment in AI and a potential economic slowdown. The Federal Reserve’s upcoming monetary policy decisions and U.S. economic data, such as September 6 labor market data, may impact market movements, along with ongoing political developments leading up to the Vice Presidential race between Kamala Harris and Donald Trump. Despite a recent surge in stocks, the S&P 500 is trading at a high multiple of expected earnings, possibly limiting further market gains.



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