Now comes Nvidia Corp, which is set to report quarterly earnings on Wednesday after the market close. Traders are hoping it can shore up fears about AI spending and effectively confirm that the stock market’s latest rally isn’t just a technology bubble.
Traders are breathing easier heading into this week after Federal Reserve Chair Jerome Powell indicated that interest rate cuts are coming. The next test for the stock market will be a read on what’s been driving gains for the past few years: artificial intelligence euphoria.
Sentiment was weak heading into Friday, with the S&P 500 Index falling for five straight sessions, its longest losing streak since January, as Wall Street pros pulled back on bets that the Fed was about to reduce borrowing costs. Powell’s comments halted those concerns, sending the S&P 500 soaring to its best day since May and less than two points from a record.
