Wall Street rises on news from the Fed and Nvidia’s balance sheet

Wall Street goes up this Wednesday August 23 before a report from benefits which could show if this year’s frenzy around the information sectorartificial intelligence is deserved or exaggerated, after nvidia Submit your balance sheet at the close of the session.

The S&P 500 up 0.7% and holding firm for now amid a grim August. He Dow Jones Industrial Average rises 105 points, or 0.3%, to 34,393 and the nasdaq climb a 1%.

Stocks also got a boost after the strong pressure building in the bond market finally eased. The Rtreasury yields fell after a report suggested the US economy is cooling in August.

Wall Street: all faith in Nvidia

The main event of the day for the market will come after the end of operations, when nvidito report how much you have earned during the spring. expectations are huge after chipmaker shocked Wall Street three months ago by predicting that he would earn an income approximately 11,000 million dollars in the three months up to July.

This figure was almost 4,000 million dollars the forecasts of the analysts and represented a jump of 64% with respect to the previous year.

The announcement caused an avalanche in Wall Street. Shares of AI-related companies skyrocketed. Nvidia’s stock has more than tripled so far this year, and it’s going to have to live up to expectations much taller than there are around to justify his breakthrough.

Much of Wall Street expects the earnings release from Nvidia meets forecasts, and its shares are already up about 7% this week in anticipation of it. Since Nvidia is one of the largest companies on the stock market, its moves carry more weight in the S&P 500 and other indices than those of smaller values.

When it publishes its results, the focus will also be on whether Nvidia gives a forecast for its revenue in the current quarter. The expectations in this regard are even higher. Analysts expect its third-quarter revenue to more than double, to $12.59 billion, from a year earlier.

Nvidia and a handful of other companies were responsible for most of the S&P 500 gains. at the beginning of the year. Many of those”Magnificent SevenThey also benefited from the AI ​​frenzy.

Recently, they have come under increased pressure as yields in the bond market have risen. When bonds pay more interest, investors feel less need to pay high prices for stocks and other investments that can fluctuate in price.

Wall Street: Waiting for Jackson Hole

Likewise, the main event of the week for the markets could be Fed Chairman Jerome Powell’s Friday speech. He will speak at an event in jackson holeWyoming, which has been the scene of major political announcements from the fed in the past.

The hope among traders has been that the Fed has already raised rates for the last time in this cycle and that it will start cutting them early next year. But those hopes have been dwindling with each stronger-than-expected economic report.