Nvidia Earnings and Fed Chair Speech Set for Market Volatility

Nvidia's earnings release tonight is expected to be a major market story after the stock was under pressure since August 17. The selling has not been due to concerns about Nvidia's quarterly performance but rather its reaction to the report.

Despite expectations of a strong quarter, investors are worried that even a good report may trigger a sell-the-news response or be punished harshly if there is any stumble.

This concern was evident in May when Nvidia reported a blowout quarter, yet the stock could not generate sustained momentum and eventually found support around $190.

In addition to Nvidia's earnings, Fed Chair Kevin Warsh's speech at Jackson Hole on Friday will also be closely watched. Unlike his predecessors, Warsh has intentionally avoided signaling his policy preferences, leaving uncertainty about how he intends to tackle inflation.