US stock market prediction: Nvidia, US economic data to dictate Wall Street this week. What to expect?

US stock market will have a busy week ahead as traders await Nvidia Corp's quarterly results on Wednesday, with earnings from the semiconductor giant posing a crucial test for the scorching AI trade. Investors will also focus on U.S. economic data in the coming week, including on consumer sentiment and inflation. Despite the latest tech declines, the S&P 500 eked out a gain on the week and is up about 10 per cent this year, around record-high levels. The Dow Jones Industrial Average notched a record high close on Friday.

The heavyweight tech sector slumped 1.6 per cent on the week after a huge run for the group, dragging on key indexes. The sector's weekly decline moderated on Friday as stocks broadly rallied after comments from Federal Reserve Chair Jerome Powell appeared to pave the way for imminent interest rate cuts. Fueled by its dominant artificial intelligence (AI) products, Nvidia's massive share price gains have buoyed both the tech sector and the overall market in recent years. Last month, Nvidia became the first company to top $4 trillion in market value.

Investors are now more "on edge" heading into Nvidia's results, said Matthew Maley, chief market strategist at Miller Tabak.


Nvidia's stock has climbed more than 30 per cent so far in 2025, pushing its gain to over 1,400 per cent since October 2022. The California-based company has epitomized the broader AI excitement that has driven up shares of a raft of tech companies and others involved in AI infrastructure such as power generation and cooling systems.

Analysts said possible reasons for recent tech stock weakness include cautionary AI industry developments, including comments from OpenAI CEO Sam Altman that investors may be getting overexcited about AI. Also, a study from researchers at the Massachusetts Institute of Technology cast doubt on returns from AI investments.

Goldman Sachs strategists pointed to particular earnings strength so far for the "Magnificent Seven" -- the group of megacap companies that includes Nvidia as well as Apple and Microsoft. Including estimates for Nvidia, the Magnificent 7 are on track to have increased earnings by 26 per cent compared with 7 per cent for the remaining 493 stocks in the index, the Goldman strategists said in a note.

Megacap tech companies focusing on AI have recently increased their estimates for capital spending, which should be favorable for Nvidia, said Paul Roach, portfolio manager at Allspring Global Investments.

FAQs

Q1. What are top three indexes of US stock market?
A1. Top three indexes of US stock market are S&P 500, Dow Jones, Nasdaq.

Q2. When is Nvidia results?
A2. Nvidia results will be announced on August 27, 2025 at 4 PM (EDT).