8:00am: Rebound expected
Wall Street looks set for a stronger start on Tuesday, with investors positioning for a packed stretch of market-moving events led by Nvidia’s earnings, fresh inflation data and the Federal Reserve’s Jackson Hole gathering.
Futures pointed higher across the board, with Dow Jones futures up 0.5%, S&P 500 futures also gaining 0.5%, and Nasdaq futures leading the advance with a 0.9% rise. The move suggests a tentative rebound after recent weakness in technology stocks, although traders appear reluctant to make any big commitments ahead of Wednesday’s key events.
Nvidia will be firmly in the spotlight when the AI chip giant reports its fiscal second-quarter results. The report is being viewed as more than just another earnings release, with investors looking for clues about the durability of spending on artificial intelligence infrastructure and whether the enormous expectations surrounding the sector can still be justified.
The economic calendar is relatively light ahead of those major catalysts, leaving markets focused on positioning and broader developments in currencies, commodities and cryptocurrencies. Bitcoin has surged past $80,000 amid growing concerns about monetary debasement, while crude oil prices have retreated following expanded US sanctions.
Zaheer Anwari, co-founder and CEO of The Revacy Fund, said markets are entering a potentially volatile period.
“Financial markets are heading into a heavy run of catalysts following their reaction to Treasury Secretary Scott Bessent’s moves on long-dated Treasury buybacks and the latest sanctions against Iran,” Anwari said. “Nvidia’s earnings on Wednesday, fresh US inflation data and Fed Chair Kevin Warsh’s Jackson Hole address on Friday could all generate further volatility as the week develops.”
The dollar has also strengthened this week after a weaker run through much of August, with the latest sanctions against Iran providing renewed support for the greenback.
“Bessent warning that entities helping Tehran circumvent restrictions could ultimately be cut off from the US dollar payments system,” Anwari said. “The move is another reminder of the structural importance of the dollar within the global financial system, while safe-haven demand could provide further support if tensions escalate.”
For now, Wall Street is heading into the session with a more upbeat tone. But with Nvidia, inflation and the Fed all waiting in the wings, the calm could prove short-lived.