Originally published at: Market Forecast: All eyes on Nvidia - InvestEngine Insights
In addition to our market roundups, we’re pleased to present our regular forecast of the market movers investors need to be aware of in the coming week.
Here’s our Head of Investments, Andrew Prosser, with the forecast in markets for this week.
This week, all eyes are on Nvidia’s quarterly earnings, set to be released after the US market closes on Wednesday.
Expectations are high. Nvidia has become the poster child for the boom in artificial intelligence, and investors aren’t just asking whether the company’s results will be strong – they’re asking if they’ll be strong enough.
With the share price having surged on AI optimism, Nvidia will need to deliver results well above forecasts to keep momentum going.
Why it matters beyond Nvidia
While the announcement is clearly important for the company itself, Nvidia’s earnings are also being seen as a barometer for the wider AI growth story.
If the results surprise positively, that could fuel broader optimism across global markets. If they disappoint, it could spark doubts about whether the AI boom has been overhyped, with ripple effects well beyond the tech sector.
Nvidia is a heavyweight in global equity indices, meaning its performance has an impact on a lot of ETFs. In many cases, these are the same ETFs that sit at the core of most diversified portfolios.
Other key data this week
Nvidia isn’t the only story to watch. The US is also releasing two important sets of economic data:
Thursday: US GDP figures, giving a snapshot of how the world’s largest economy is performing.
Friday: US inflation numbers, which carry particular weight ahead of the Federal Reserve’s interest rate decision in three weeks’ time.
If inflation comes in lower than expected, it could strengthen the case for a rate cut. Higher-than-expected numbers, however, may prompt the Fed to hold off. Both outcomes could shift global market sentiment.
What investors should keep in mind
Big market events like Nvidia’s earnings or US inflation data often make headlines and can lead to short-term volatility. But for long-term investors, the key is to stay focused on broader goals and diversification rather than reacting to every announcement.
At InvestEngine, the focus is always on keeping your investments aligned with your risk profile and long-term strategy, not short-term market noise.
Important information
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply.
This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.
Tax treatment depends on personal circumstances and is subject to change, and past performance is not a reliable indicator of future returns.