Major indexes closed lower on Friday after an uneasy week. This week, Nvidia's earnings, bond yields, and lingering geopolitical uncertainty from the Trump-Xi summit will dominate.
The S&P 500 closed Friday down 1.2%, gaining just 0.1% on the week. The tech-heavy Nasdaq fell 1.5% Friday for a weekly loss of roughly 0.1%. The Dow Jones closed Friday down 1.1%, ending the week down 0.2%.
The catalyst on Friday was the 10-year yield firmly crossing 4.5%. Expect markets to keep refreshing that page this week.
The week's standout event: Nvidia earnings
Nvidia's quarterly results on Wednesday will dominate the week. The company just surpassed $5.7 trillion in market cap, reaffirming its place as the largest company in the world. Coming off CEO Jensen Huang's trip to China alongside President Trump, any commentary about dealmaking will be in focus.
We sense a marked apathy on this stock even among most big long-onlies — so the set-up for a good set of numbers and potentially positive guidance is there.
Tim Arcuri, UBS analyst
Earnings calendar
- Monday: Ryanair (budget airline)
- Wednesday: Nvidia (AI/semiconductors), Target (big-box retail)
- Thursday: Walmart (big-box retail)
- Friday: Booz Allen Hamilton (government consulting)
Economic calendar
Friday headlines the economic calendar with the University of Michigan's consumer sentiment reading and inflation expectations survey. Services economy data from the New York Fed and Kansas City Fed arrives Monday and Friday, respectively.
Post-Trump-Xi geopolitical uncertainty, sticky inflation, and rising bond yields are all playing out at once. Nvidia's earnings will be the pivot point that determines which way the week turns.
