Nvidia Earnings and Inflation Data Set to Drive US Stock Market

The US stock market is experiencing caution ahead of several key events: Nvidia's earnings report, the latest PCE inflation data, and fresh signals on the Federal Reserve's interest-rate outlook.

Nvidia's results are particularly important for the technology-heavy Nasdaq index because the company has become a key driver of the broader AI trade. The semiconductor giant is scheduled to report its earnings after the US market closes, with investors looking for evidence that strong AI-related spending is continuing to support demand for Nvidia's chips.

The Dow Jones Industrial Average and S&P 500 futures are also being closely watched as traders assess the outlook for corporate earnings, inflation, and interest rates. The PCE report could influence expectations for Federal Reserve policy, with a hotter-than-expected inflation reading potentially strengthening expectations for tighter monetary policy.