S&P 500 Slips Ahead of Nvidia Results: Investors Await Key Tech and Inflation News

Wall Street cautious as markets react to chipmaker earnings, interest rate speculation, and major corporate activity

Mixed Day for US Markets

The S&P 500 closed lower on Monday as investors showed restraint ahead of Nvidia’s highly anticipated earnings release. Despite tech sector support, broader markets were weighed down by uncertainty surrounding interest rates and global chip demand.

• S&P 500 fell by 0.4%
• Dow Jones Industrial Average dropped 349 points, or 0.8%
• NASDAQ Composite eased 0.2%

Tech Stocks Hold the Line

Nvidia (NASDAQ: NVDA) helped cushion the S&P 500’s fall, leading the technology sector higher. The chipmaker's earnings report, due after Wednesday’s market close, is being closely watched for signs of continued demand, especially from artificial intelligence and data centre markets.

• Analysts expect strong results and improved guidance
• Nvidia may benefit from a potential rebound in revenue from China following the easing of US restrictions on chip exports

Wedbush analysts said they were raising their forecast for Nvidia’s earnings, citing “solid demand trends” and improved prospects in China after President Trump relaxed the H20 chip sales ban to Beijing.

Intel Faces Investor Concerns

While Nvidia rallied, Intel saw its stock give up earlier gains after warning that the US government’s plan to acquire a 9.9% stake in the company could bring new international risks.

• Intel cautioned that the ownership could expose it to foreign subsidy regulations
• Most of Intel’s revenue comes from non-US markets, raising concerns about geopolitical complications

Apple Embarks on Major Overhaul

Apple (NASDAQ: AAPL) shares edged higher after Bloomberg reported the company has launched a three-year overhaul of both its iPhone hardware and software. The strategic move is expected to enhance competitiveness in an increasingly saturated smartphone market.

Mergers and Acquisitions Heat Up

Corporate deal-making surged:

• Keurig Dr Pepper announced an $18 billion acquisition of Dutch coffee group JDE Peet’s, with plans to divide into two focused businesses: one for coffee, the other for cold beverages
• Thoma Bravo, a US-based private equity firm, revealed a $2 billion acquisition of Verint Systems, boosting its software portfolio

Rate Cuts on the Horizon?

US Treasury yields rose slightly as investors weighed comments from Federal Reserve Chair Jerome Powell at Jackson Hole. His speech opened the door to a possible interest rate cut in September.

Key takeaways:

• Powell noted the labour market shows signs of weakness
• Lower inflation pressures from tariffs reduce resistance to monetary easing
• Markets now anticipate further clues from upcoming inflation data and Fed commentary

Conclusion: All Eyes on Nvidia and the Fed

As investors await Nvidia’s results and key inflation data, the S&P 500 remains in a holding pattern. If Nvidia exceeds expectations and inflation remains tame, markets could rally on renewed optimism.

However, caution still lingers due to:

• Potential international regulatory issues (Intel)
• Shifting central bank policies
• Fragile global demand dynamics

What could happen next for stocks?

• A strong earnings performance from Nvidia could trigger a tech-led bounce
• Any confirmation of a September rate cut could further boost equities
• But geopolitical uncertainties and volatile inflation trends could cap gains

Investors would be wise to remain diversified and keep a close eye on macroeconomic signals and earnings results throughout the week.

Sources: (Investing.com, Reuters.com)