US Stocks Rise as Nvidia Earnings Loom
US stocks rose on Tuesday as Treasury yields fell and semiconductor stocks recovered. Investors are positioning ahead of Nvidia's earnings tomorrow and the Federal Reserve's Jackson Hole symposium later this week.
The 10-year Treasury yield is down more than three basis points, extending yesterday's decline after reports that the US Treasury could consider using its $1 trillion general account to fund further bond repurchases.
Nvidia is set to report earnings tomorrow, providing another test of demand for AI chips and data-centre infrastructure. The results will also provide clues on whether the huge investment cycle seen across the sector remains strong enough to justify it.
After Nvidia's earnings, attention shifts to monetary policy as core PCE, the Fed's preferred inflation gauge, is due Wednesday, followed by Fed Chair Kevin Warsh's speech at Jackson Hole on Friday. Investors will be looking for clues over the outlook for interest rates and any change in language around inflation or monetary policy could move Treasury yields, the dollar, and equities.