What To Expect in Markets This Week: Nvidia Earnings, a Key Measure of Inflation, and More

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Nvidia CEO Jensen Huang could offer more details on the AI chipmaker's product roadmap during the company's earnings call Wednesday. After a sweeping rally for U.S. stocks Friday fueled by rising expectations of an interest rate cut next month, earnings from the world's most valuable company and a key measure of inflation could command the spotlight this week.

Chipmaker Nvidia (NVDA) has been front-and-center in the AI boom, with surging sales on growing demand for the emerging tech. Investors will likely be watching for updates on its most advanced offerings, as well as its plans to navigate changing trade policies, when the company posts its quarterly results.

Investors can also look forward to the latest release of the Federal Reserve's favored measure of inflation, which could influence whether the central bank makes its first interest rate cut of the year in September.

Read to the bottom for our calendar of key events—and one more thing.

Nvidia Earnings To Highlight Strength of AI Demand

Nvidia’s second-quarter results due Wednesday could show whether the chipmaker continues to set the pace in the AI race, with analysts anticipating another sales record despite some headwinds from China export curbs.

Nvidia said in May that it expects to report growing revenue, though it warned of a hit from China export restrictions to the tune of $8 billion The company could offer more updates on its business in China after making a deal with the Trump administration to share revenue from its AI chip sales there. Nvidia is also considering offering a variety of new products for the Chinese market in advance of government approval.

Some other companies set to report this week include chipmaker Marvell Technology (MRVL), Dell (DELL), CrowdStrike (CRWD), cloud provider Snowflake (SNOW), and engineering software maker Autodesk (ADSK), along with several Canadian banks.

Key Inflation Data Could Influence Fed Moves

A fresh update on inflation is set to come Friday, with the Personal Consumption Expenditures Index for July, after dovish remarks last week from Fed Chair Jerome Powell boosted expectations for a rate cut in September.

The June PCE report showed that inflation ticked higher that month, but a similar inflation report released earlier showed price increases in July were lower than some feared. The PCE report is the Fed’s preferred measurement of inflation, giving its reading potentially more impact with central bankers ahead of September's interest rate decision.

This week will also bring a pair of consumer surveys, data on the U.S. trade balance, and housing market data, among other things.

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Story Continues## This Week’s Calendar

Monday, Aug. 25

• New home sales (July)
• Key Earnings: PDD Holdings (PDD)

Tuesday, Aug. 26

• Consumer confidence (August)
• Federal Reserve Officials Speaking: Richmond Fed President Tom Barkin
• More Data to Watch: Durable-goods orders (July), S&P Case-Shiller home price index (June)
• Key Earnings: Bank of Montreal (BMO), Bank of Nova Scotia (BNS), MongoDB (MDB), Okta (OKTA)

Wednesday, Aug. 27

• Federal Reserve Officials Speaking: Richmond Fed President Tom Barkin
• Key Earnings: Nvidia, Royal Bank of Canada (RY), CrowdStrike, Snowflake, Veeva Systems (VEEV), Agilent Technologies (A), HP (HPQ)

Thursday, Aug. 28

• Gross domestic product - first revisions (Q2)
• More Data to Watch: Initial jobless claims (Week ending Aug. 23), Pending home sales (July)
• Key Earnings: Toronto Dominion Bank (TD), Dell Technologies (DELL), Canadian Imperial Bank of Commerce (CM), Marvell Technology, Autodesk, Li Auto (LI), Affirm Holdings (AFRM), Dollar General (DG)

Friday, Aug. 29

• Personal Consumption Expenditures (PCE) (July)
• More Data to Watch: Consumer sentiment - final (August), U.S. trade balance (July), retail inventories (July), wholesale inventories (July)

One More Thing

A new partnership between CME Group and FanDuel will soon allow for “event contracts” on a wide variety of events, letting users make bets on the outcome of the latest inflation report, cryptocurrency movements, where the S&P 500 finishes, and a host of financial marketplace results. Investopedia's Nisha Gopalan has more on that here.

Read the original article on Investopedia

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