Nvidia Earnings and Jackson Hole to Set Market Direction

The US stock market closed the week under pressure due to a rebound in bond yields and a jump in oil prices, resulting in a decline of around 700 points for the Dow and 0.87% for the S&P 500.

However, the focus is shifting towards next week, where two major catalysts will set Wall Street's direction: Nvidia's quarterly report and the Jackson Hole symposium.

Nvidia's earnings on Wednesday, August 26, after the close, are a crucial test of the AI trade sentiment. The semiconductor complex, including AMD, TSM, and AVGO, tends to move in sync with Nvidia's performance. The company's guidance will provide valuable insights into demand for AI-related products.

The Jackson Hole symposium from August 27-29 will also be closely watched, as it provides a platform for the Federal Reserve to communicate its rate path ahead of the September meeting. A more dovish tone could impact rate-sensitive stocks, including MSFT, one of Nvidia's largest chip buyers.