Wall Street is gearing up for a busy week as investors turn their attention to a trio of market-moving events: Nvidia’s earnings report, major retailer results, and the return of US economic data following the longest government shutdown in history.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD), the world’s largest AI-focused company, is set to report its latest quarterly results on Wednesday. The tech giant has become a bellwether for the AI trade, and after recent weakness in the sector, all eyes are on whether the company can reassure investors.
Analysts are expecting strong numbers: revenues of around $55.1 billion and net income of $30.8 billion, fueled by the ongoing demand for its Blackwell and Reuben chips. Gross margins, expected to sit between 70–75%, will also be closely watched.
“Nvidia is central to the entire AI project,” said Kathleen Brooks, research director at XTB. “This report could lift the entire tech sector later this week if guidance is strong, as hyperscalers’ share prices may lag AI capex beneficiaries like Nvidia for some time.”
Retailers also take center stage this week. Walmart Inc (NYSE:WMT, ETR:WMT), Home Depot Inc (NYSE:HD, ETR:HDI), and Target Corp (NYSE:TGT) will report quarterly results, providing the latest insight into the health of the US consumer ahead of the holiday season. With the economy slowly recovering from government disruptions, investors will be eager to hear how consumers are spending.
Adding to the week’s significance is the return of US economic data. The long-delayed September nonfarm payrolls report is expected Thursday, along with other key releases that could influence Federal Reserve policy. “Later this week we will get long-awaited data releases from the US, which will be key to determining if the Fed cuts interest rates next month,” Brooks noted.
The backdrop for investors is mixed. November has historically been strong for stocks, with the S&P 500 averaging a 5.6% gain over the past five years. But so far, this month has been challenging: the Nasdaq is down 3.5% and the S&P 500 more than 1.5%. Meanwhile, volatility in bond markets abroad – particularly in Japan and the UK – is adding to the uncertainty.
Tech stocks, which led the market sell-off last week, are also in focus. High-beta sectors like tech, communications, and consumer discretionary were sold off, while more defensive sectors such as energy, utilities, and financials fared better. Analysts warn that the tech rotation may be justified as investors scrutinize AI infrastructure spending. As Ipek Ozkardeskaya, senior analyst at Swissquote, pointed out, “Valuations, particularly for AI stocks, seem to be a theme puncturing the stock market rally. Big tech using free cash flow along with debt to fund their AI dreams is new territory for the tech trade.”
Investors will be watching closely to see if Nvidia’s results can revive momentum in the AI trade and support broader tech sentiment. With retail earnings and crucial economic data also on the agenda, this week could set the tone for the market’s direction heading into the holiday season.