Nvidia Earnings and Jackson Hole Set Stage for Market Volatility

Nvidia's earnings and the Federal Reserve's Jackson Hole speech are setting the tone for this week's market activity.

The chipmaker's results will provide a clean signal of how much companies are spending on AI computing, with UBS expecting Nvidia to top revenue estimates and guide in a way that supports longer-term profit targets.

Meanwhile, Fed Chair Kevin Warsh is expected to lean towards a policy pause in his speech at Jackson Hole, even if core inflation stays above the 2% goal. This could keep short- to medium-term Treasury yields elevated, raising borrowing costs across the economy.

The market will also be watching two major auctions: $69 billion of 2-year notes on Tuesday and $70 billion of 5-year notes on Wednesday. If these auctions require higher yields to attract buyers, it could tighten financial conditions and weigh on long-duration stocks.