Nvidia Earnings and PCE Inflation Data Set for Key US Market Releases

The US markets are bracing for two significant releases on Wednesday: the PCE inflation data and Nvidia's earnings report. The semiconductor group has been under pressure lately, with the AI trade specifically being targeted by sellers. This has led to a decline in the S&P 500 and Nasdaq, but it's worth noting that the broad market is still holding its bid.

Nvidia needs more than just a routine beat to regain momentum. The company must show acceleration in AI demand, data-center spending, and forward guidance. A clean quarter with soft guidance will not be enough to boost the chip group.

The PCE inflation data will likely set the tone for yields before Nvidia's report. If yields come down as expected by UBS, which forecasts S&P 500 earnings growth of 25% this year and 14% next year, it could be a positive sign for stocks.