The stock market is bracing itself for a potential big move next week as Nvidia’s earnings report sets to trigger significant reactions from investors. The company’s financial results, due out on Wednesday, are expected to be the largest event in the S&P 500 for the month.
According to recent options activity, investors anticipate a 0.8-percentage-point move in the index in either direction, depending on what Fed Chair Jerome H. Powell says during his speech at Jackson Hole. Options data from Citi Global Markets shows a possible move of 0.9 percentage points if Nvidia’s earnings are released on Thursday.
Nvidia’s valuation has surged to $4 trillion, and its weighting in the S&P 500 has increased to almost 8%. The company’s stock performance has been closely tied to the tech sector, with some analysts speculating that the A.I. theme may be causing a bubble. Investors will look for signs of sustained demand for Nvidia’s products.
The Fed’s speech is also expected to shift market expectations on monetary policy and interest rates. Analysts expect Powell’s address to influence the central bank’s stance on cuts to interest rate, which could impact the economy and stock market.
While some analysts have become desensitized to big moves in Nvidia’s stock price, others remain bullish on the company’s prospects. As one analyst noted, Nvidia’s earnings report is a significant event that will likely affect other major stocks tied to the A.I. theme.
Source: https://www.nytimes.com/2025/08/21/business/stocks-nvidia-federal-reserve.html