Markets are going to be watching in two key directions this week: Nvidia and the Jackson Hole meeting.
Nvidia's earnings report, always a critical barometer of investor sentiment, and the Jackson Hole symposium will put this year’s stock market rally to the test, providing insight into whether the AI-fueled gains can hold up amid growing uncertainty around economic growth and interest rates.
Global bond yields surged recently, sending the 30-year Treasury yield to its highest level since 2007, pressuring stocks and raising concerns about borrowing costs for households and companies investing heavily in AI infrastructure.
The Treasury Department's efforts to calm markets by doubling buybacks for long-dated debt offered only brief relief, with yields rebounding on Thursday, sharpening focus on the Aug. 27 to Aug. 29 event in Jackson Hole to see how Federal Reserve (Fed) Chair Kevin Warsh communicates policy in an environment where guidance has been dropped.
"All eyes are going to be pointed towards Jackson Hole ... because there's still not a whole lot of clarity. You see that with the bond market today," said David Wagner, head of equities at Aptus Capital Advisors.
