Wall Street heads into one of the biggest weeks of the late summer, with Nvidia (NVDA) earnings, Federal Reserve Chairman Kevin Warsh's Jackson Hole debut and a key inflation reading potentially setting the tone for stocks and bonds heading into September.
Nvidia takes center stage Wednesday after the bell, with its results providing another major test of the durability of the AI trade. Investors will be looking for updates on AI infrastructure demand, product ramp timing, China exposure and the economics of the chipmaker's expanding financing partnerships. Options traders are pricing in a roughly 6% move in Nvidia shares following the report.
The results could reverberate across the semiconductor and AI complex. Marvell Technology (MRVL), Micron (MU), Arm (ARM) and Advanced Micro Devices (AMD) have shown some of the closest trading correlations with Nvidia following earnings. Salesforce (CRM), CrowdStrike (CRWD), HP (HPQ) and Okta (OKTA) also report Wednesday, while Marvell releases results Thursday.
Investors will have plenty to digest even before Nvidia reports. The August core PCE price index, the Federal Reserve's preferred inflation gauge, is due Wednesday morning, with economists expecting a 3.3% annual increase. The report takes on added importance following the Fed's decision last month to hold interest rates steady despite three policymakers dissenting in favor of a hike.
Attention then turns to Jackson Hole, where the bond market could ultimately provide the week's biggest fireworks. The Kansas City Fed's annual economic policy symposium begins Thursday, with Warsh scheduled to speak Friday at 10 a.m. in his first Jackson Hole appearance as Fed chairman.
Investors will be listening closely for his assessment of inflation, monetary policy and the rate outlook following the unusually divided July meeting, although he is likely to stick to his policy of avoiding forward guidance. Warsh will also likely face questions about the Treasury Department's move to bring down long-term rates through purchases of longer-dated bonds.
Elsewhere on the earnings calendar, PDD (PDD) and XPeng (XPEV) report Monday; Intuit (INTU), DICK'S Sporting Goods (DKS) and Zoom (ZM) report Tuesday; and Dollar General (DG), Best Buy (BBY), Autodesk (ADSK) and Workday (WDAY) report Thursday.
Other events to watch include Gamescom, which opens its public expo Wednesday with Microsoft (MSFT), Nintendo (NTDOY) and Electronic Arts among the participants. Netflix (NFLX) will host an exclusive extended preview of Take-Two Interactive's (TTWO) highly anticipated Grand Theft Auto VI on Thursday.
Finally, the second World Humanoid Robot Games continue this week, with more than 1,300 competition sessions across athletic events and real-world challenges. The event comes amid heightened investor interest in humanoid robotics following Unitree Robotics' IPO and Tesla's (TSLA) continued push to develop its Optimus robot.
