Nvidia earnings and the Fed's preferred inflation gauge: What to know this week

Published On Feb 23, 2025, 8:03 AM

This week, investors are awaiting Nvidia's earnings report, which could signal key insights into the demand for AI chips amid rising competition. Analysts expect substantial earnings growth for Nvidia. Additionally, the Federal Reserve's preferred inflation measure, the core Personal Consumption Expenditures (PCE) index, will be released, with expectations of a decrease in inflation rates. Market sentiment is cautious due to concerns over slower economic growth and persistent inflation, reflected in a slight downturn in major stock indices previously. Overall, the week appears critical for both Nvidia and broader economic indicators.

Stock Forecasts

NVDA

Positive

Nvidia is expected to report strong earnings and revenue growth, supported by anticipations of robust AI chip demand. However, potential competition could impact investor sentiment. Overall, the positive outlook on their earnings suggests a potential boost in share price following the report.

QQQ

Negative

Due to concerns regarding sticky inflation and the upcoming inflation data, market dynamics may remain volatile. Investors may be cautious leading up to the PCE release, which could bring about short-term selling or hesitation in the market, creating a potential negative sentiment overall in the tech sector.

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