Global and U.S. stock markets are experiencing cautious optimism ahead of Nvidia's highly anticipated quarterly earnings report, which is expected to significantly impact market direction due to its pivotal role in the AI sector. Nvidia's stock has risen about 160% year-to-date, and options traders are predicting a potential 10% swing in its share price based on the earnings outcome. The S&P 500 and Dow are near record highs, buoyed by robust earnings reports from other companies, while European markets also posted gains. Investors are also closely watching for indications of future Federal Reserve interest rate cuts, adding to market volatility. The Conference Board's consumer confidence index showed improvement, reflecting resilient consumer sentiment despite inflation pressures.