The aftereffects of Powell's speech linger, NVIDIA's earnings report is set to debut this week, can the S&P 500 continue its upward trend?

Zhitong
2025.08.25 22:35
portai
I'm PortAI, I can summarize articles.

This week, the U.S. stock market will face an important test as NVIDIA is set to announce its earnings report on Wednesday. The market generally believes that its performance will impact the movement of the S&P 500 index. Last Friday, Federal Reserve Chairman Jerome Powell hinted at a possible interest rate cut, leading to a 1.5% increase in the S&P 500 index. However, on Monday, the market failed to maintain its upward momentum, with the S&P 500 index dropping 0.43%. NVIDIA's weight in the S&P 500 is close to 8%, and its earnings report performance may significantly influence market reactions

According to Zhitong Finance APP, the U.S. stock market will face a "heavyweight test" this week, as artificial intelligence chip giant NVIDIA (NVDA.US) is set to announce its earnings after the market closes on Wednesday. The market generally believes that its performance and outlook will be key factors in determining the next direction of the broader market.

After Federal Reserve Chairman Jerome Powell hinted at a possible rate cut in September during the Jackson Hole annual meeting last Friday, U.S. stocks experienced a strong rebound, with the S&P 500 index closing up 1.5% last Friday and recording a weekly gain of 0.3%. However, on Monday, the market failed to maintain its upward momentum, with the S&P 500 index closing down 0.43%, the Dow Jones Industrial Average falling 0.77%, and the Nasdaq Composite Index retreating 0.22%.

"As the Jackson Hole meeting concludes, the next important catalyst is NVIDIA's earnings report," noted Nicholas Colas, co-founder of DataTrek Research. With NVIDIA's weight in the S&P 500 index close to 8%, its performance has a significant impact on the broader market. "NVIDIA's performance may overshadow or even amplify the market reaction following Powell's speech."

Currently, NVIDIA's market capitalization has exceeded $4 trillion, and its stock price has risen nearly 34% this year, far surpassing the S&P 500 index's increase of 9.5%. Technically, analysts are focusing on key levels, including the 50-day moving average around $167 and short-term resistance at $184.

Meanwhile, as one of the "seven giants," NVIDIA is also the last tech giant to report quarterly earnings. Anthony Saglimbene, chief market strategist at Ameriprise Financial, warned that Microsoft (MSFT.US), Apple (AAPL.US), Amazon (AMZN.US), Meta (META.US), Alphabet (GOOG.US, GOOGL.US), and NVIDIA together account for nearly one-third of the S&P 500 index, significantly increasing market concentration risk.

It is worth noting that despite a solid performance in the second-quarter earnings season, 474 companies in the S&P 500 index have reported earnings, with 80% exceeding expectations. However, the market generally believes that this week's "real test" lies with NVIDIA. Bespoke Investment Group stated in a report: "The earnings season is basically over, but the real 'elephant in the room' remains NVIDIA."

Source: Zhitong The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.