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Nvidia earnings keep U.S. markets on edge
U.S. equities slipped as investors braced for Nvidia’s Q2 results and Friday’s PCE inflation release. Meanwhile, geopolitical tensions remained elevated after Ukraine struck Russian energy assets over the weekend, lifting oil prices.
Nvidia reports Q2 earnings Wednesday, August 27, after the close
Core PCE data due Friday, August 29, are expected to show a modest pickup
Oil prices rose as Ukraine escalated drone strikes on Russian energy infrastructure.
Nvidia results in focus
Wall Street benchmarks ended modestly lower on Monday (−0.49% on average), consolidating after Friday’s strong rally when the Fed signaled rate cuts could begin as soon as September. Sensitivity to near-term catalysts remains elevated, with Nvidia Corporation’s Q2 report the most immediate driver.
Consensus forecasts call for ~52% YoY revenue growth and ~48% YoY EPS growth. Since 2023, Nvidia’s explosive AI-fueled gains have propelled its market capitalization to about $4.39 trillion, cementing its status as one of the world’s most valuable companies. But its sheer weight in U.S. indices raises the risk of outsized market moves should results diverge from expectations.
Fed watchers eye PCE inflation
The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, will be released Friday. Markets expect headline PCE to remain at 2.6% YoY, with core PCE edging up to 2.9% from 2.8%. While next week’s labor data may carry greater policy significance, any upside surprise in PCE could spark renewed volatility across equities, bonds, and FX.
The Fed has emphasized that easing is conditional, not guaranteed. Recent producer-price surprises showed how quickly expectations can swing, underscoring the sensitivity of markets to inflation data.
Oil edges higher on geopolitical premium
Brent rose 0.72% and WTI climbed 1.79% as traders priced in higher geopolitical risk following Ukraine’s intensified drone strikes on Russian energy infrastructure, which caused localized damage at storage and refining facilities.
Adding to uncertainty, President Donald Trump reiterated Friday that the U.S. would impose fresh sanctions on Russia unless progress is made toward a peace framework within two weeks. Moscow dismissed the threats, saying it would not bow to foreign pressure. Oil has remained range-bound near $60–70/bbl, caught between supply risks and sluggish demand growth.
Key economic events this week
Tuesday
- Australia: RBA meeting minutes
- U.S.: Durable goods orders (MoM)
- U.S.: Conference Board consumer confidence
Wednesday
- Germany: GfK consumer confidence
- U.S.: EIA crude oil inventories
Thursday
- U.S.: GDP growth rate (QoQ, second estimate)
- U.S.: Initial jobless claims
Friday
- Japan: Consumer confidence
- Germany: Inflation rate
- U.S.: Core PCE Price Index
- Canada: GDP growth rate (QoQ)
- U.S.: Personal spending
