Nvidia Report and Jackson Hole Symposium to Test AI-Fueled Gains

The upcoming week will be crucial for stocks as Nvidia's earnings report and the Jackson Hole symposium take center stage. The market is closely watching how the AI-fueled gains will hold up amid growing uncertainty around economic growth and interest rates.

Nvidia, a key player in the AI ecosystem, reports its second-quarter results on August 26. The company's performance will provide insight into demand for the sector, which has been driven by the rapid expansion of data center capacity.

The Jackson Hole symposium, scheduled for August 27-29, is expected to shed light on the policy environment in which this expansion will take place. Fed Chair Kevin Warsh will make his first appearance at the event since taking office in May, and investors are eager to see how he approaches monetary policy.

The market is pricing in a 35% chance of a September rate hike, with odds rising to 66% by December. U.S. Treasury yields rebounded on Thursday, undoing much of the previous day's decline despite efforts by the Treasury Department to bolster liquidity in long-dated notes and bonds.