Markets Prepare for Higher Volatility as Key Events Loom

The global financial markets are bracing for higher volatility as August comes to an end. The previous week's turmoil over US debt had a significant impact on the value of assets such as the dollar and gold.

Three key events will be closely watched next week: the Jackson Hole symposium, Nvidia's earnings report, and the release of July PCE data for the US.

Nvidia's earnings report on Wednesday is expected to set the tone for the tech index. The company has a history of serving as a market catalyst with its earnings reports. If the demand for artificial intelligence solutions does not justify its high valuation, it could lead to a deeper correction in the broader tech index.

Gold is gaining popularity among investors due to rising uncertainty. Wednesday's report on US personal income and spending, along with the preferred inflation measure of the Fed, will reveal whether the Fed has room to pause interest rate hikes despite rising oil prices.

The USDJPY currency pair remains volatile amid turmoil in the bond market. Wednesday's PCE inflation readings and Friday's speech by Kevin Warsh at Jackson Hole could directly impact the dollar valuation and bond yields.