Nvidia Earnings and Geopolitical Tensions to Drive Market Volatility
US stocks rebounded last Friday after a sharp drop on Thursday, but weekly pressure remains. The Dow Jones Industrial Average rose 0.98% to 53,277.01, while the S&P 500 gained 0.43% to 7,674.37 and the Nasdaq Composite advanced 0.44% to 26,180.455.
The strong expansion in the services sector, as indicated by a composite PMI of 56.0, has eased concerns about an economic slowdown, but the weekly picture remains challenging. The S&P 500 and Nasdaq suffered their first weekly declines in four weeks, with the Dow posting its second straight week of losses.
Nvidia's earnings report will be closely watched this week, as investors monitor Blackwell shipment volumes, data center revenue guidance, and whether AI capital expenditures can continue to fuel future orders. The company is set to raise prices for high-end servers equipped with Nvidia AI chips by 15% next year, driven by soaring memory chip costs.
Geopolitical tensions are also weighing on markets, particularly in the Middle East, where Iran warned of a potential cutoff in oil exports via the Strait of Hormuz. US-Canada trade negotiations broke down, introducing fresh headwinds for oil prices and risk assets this week.