Nvidia earnings this week will be a key market catalyst after Federal Reserve Chair Jerome Powell signaled rate cuts are coming, easing investor concerns, according to Bloomberg. The S&P 500 logged its best day since May on Friday, rebounding from a five-day losing streak and closing less than two points from a record. Nvidia, which makes up nearly 8% of the index, reports on Wednesday after the close. Wall Street is expecting $1.01 in adjusted earnings per share, up 48% year-over-year, and revenue above $46 billion, up 54%. Analysts say its results will determine whether the AI-fueled rally continues or stalls, with options traders pricing in a 6% swing in either direction. Risks remain around China, where U.S. restrictions and Beijing pushback on Nvidia’s H20 chip have clouded its sales outlook. Analysts have raised price targets, with the average set at more than $194, about 9% above Friday’s $178 close.
