Nvidia Earnings and Fed Rate Cut Speculation Drive Market Sentiment

Equities rallied sharply after Federal Reserve Chair Jerome Powell signaled potential rate cuts as early as September, with the Dow Jones Industrial Average closing at record highs. The S&P 500 edged up 0.3% weekly while the Nasdaq dipped 0.5%, reflecting cautious Optimism in tech-heavy indices.

All eyes now turn to Nvidia's Wednesday earnings release—a litmus test for the AI trade's sustainability amid stretched valuations. The chipmaker's results could dictate near-term momentum for growth stocks and crypto assets alike, given their correlation with tech sector performance.

Beyond corporate earnings, this week's economic calendar delivers critical inflation data and consumer sentiment metrics. These indicators will either reinforce or undermine Powell's dovish pivot at Jackson Hole, where he acknowledged 'shifting risks' may warrant policy adjustments.