Nvidia Earnings Report Expected to Influence Market Direction

Nvidia's upcoming profit report is pivotal for the U.S. stock market, especially after recent volatility linked to the Chinese startup DeepSeek, which has raised investor concerns about the AI sector's stability. As the second most valuable company globally, Nvidia's performance, which has seen its shares surge over 550% in two years, will be closely watched, with expectations of significant market reactions following its earnings announcement. Analysts predict a potential 7.7% stock price swing post-report, equating to a market value fluctuation of around $260 billion. Meanwhile, the S&P 500 faces challenges, having fallen approximately 1.7% over the past week, with inflation and corporate earnings influencing market sentiment. Investors are also eagerly awaiting the core PCE price index, the Federal Reserve's preferred inflation measure, which could impact monetary policy decisions. Overall, the market's direction appears uncertain as it navigates these critical developments.