Market Braces for Pivotal Week as Nvidia and Fed Weigh In

The US stock market is experiencing a quiet Monday ahead of a pivotal week that could significantly impact stocks and bonds.

Nvidia, the chip giant at the center of the AI boom, will release its latest quarterly earnings report on Wednesday, which could dictate the next move for AI-related stocks. The company's shares sank 2.3% and weighed heavily on the S&P 500 index, where most other stocks rose.

The bond market is also a key focus area, with Treasury yields climbing through the summer due to inflation concerns, government debt, and expensive oil prices. Last week, the US Treasury Department announced a surprise move to increase planned buybacks of Treasurys, which may have only a limited effect in containing yield rises.

Analysts warn that this attempt by the Treasury could ultimately lead to higher pressure on inflation, prompting the Federal Reserve to raise interest rates. Fed Chairman Kevin Warsh is set to deliver a speech at an economic symposium in Jackson Hole, Wyoming, which may provide insight into the Fed's plans for addressing inflation.