Overview
- Nvidia will report quarterly results midweek, and investors see the numbers as a pivotal test of whether heavy spending on AI and data centers can produce the profits needed to justify current lofty valuations.
- Federal Reserve guidance is in focus with U.S. inflation data due before the Fed symposium and Fed Chair Kevin Warsh scheduled to speak in Jackson Hole on Friday, events that could change rate expectations.
- Rising long-term government bond yields have pushed up borrowing costs and reduced the present value of future corporate profits, increasing pressure on growth and tech stocks.
- The U.S. announced a new sanctions package targeting Iranian revenue streams, which has raised geopolitical risk for energy supplies near the Strait of Hormuz even as oil prices fell modestly on Monday.
- European markets are trading with low conviction: the DAX is hovering just above 26,000 points supported by internationally focused large caps tied to AI and infrastructure, while Asian tech names such as Samsung and Alibaba posted sharp single-day losses that weighed on sentiment.