A Crucial Week for Wall Street
As summer 2025 draws to a close, investors are watching two forces with outsized influence on the markets: Nvidia’s earnings and the Federal Reserve’s policy direction. The Dow Jones Industrial Average is hitting record highs, fueled by optimism that Fed Chair Jerome Powell has opened the door to interest rate cuts. At the same time, Nvidia — the world’s largest company and undisputed leader in AI hardware — will deliver its quarterly results, providing fresh insight into whether the AI-driven rally can continue.
This week could set the tone for the rest of the year, balancing inflation concerns, GDP growth data, and corporate earnings against investors’ appetite for risk.
The Market Rally: Fed Optimism Meets Tech Uncertainty
Last week highlighted just how sensitive markets remain to Fed signals. Following Powell’s speech at the Jackson Hole Symposium, equities surged as he acknowledged that “downside risks to employment are rising,” suggesting rate cuts could be on the horizon.
- Dow Jones (^DJI): up 1.5% on the week, reaching record highs.
- S&P 500 (^GSPC): up 0.3%, showing resilience.
- Nasdaq (^IXIC): slipped 0.5%, as tech cooled despite the rally.
According to the CME FedWatch Tool, investors now place 85% odds on a quarter-point rate cut in September. The upcoming PCE inflation report will be the next critical test.