AI Chip Giant’s Results Awaited

The market’s attention is fixed on Nvidia this week as the artificial intelligence (AI) chipmaker prepares to release its quarterly results on Wednesday. As the world’s most valuable company by market capitalization, its performance is a key barometer for the entire tech sector. In its last report, Nvidia narrowly surpassed expectations, and investors are now watching closely for signs of sustained demand for AI technology amid concerns that company valuations may have outpaced performance.

Retail Sector Health on Display

Major retailers are also scheduled to report earnings, offering a comprehensive look at the state of consumer spending. Walmart, the world’s largest retailer, will release its figures on Thursday. The report follows the recent announcement that John Furner is set to take over as CEO on February 1, replacing Doug McMillon. Walmart’s stock reached an all-time high in October, and its results often signal broader economic trends.

Other significant retail reports this week include Target and Home Depot, which recently raised its outlook citing strong demand for home improvement projects. Lowe’s, TJX Companies, and Ross Stores will also release their earnings, rounding out a crucial week for the sector.

Economic Reports Resume Post-Shutdown

Investors are anticipating the return of key government economic data following the end of a 43-day shutdown, the longest in U.S. history. The work stoppage delayed the collection and release of critical information that the Federal Reserve and market analysts rely on to gauge the economy’s direction. While it isn’t clear if all agencies will resume their normal schedules immediately, several important updates are expected.

This week will see the publication of the Federal Reserve’s October meeting minutes, which will provide insight into internal discussions on interest rate policy. On the housing front, existing home sales data for October is due on Wednesday. The market has been stuck near decade-low levels for over two years, constrained by high interest rates and limited inventory.

The week will conclude with the release of November’s consumer sentiment data on Friday. An initial report suggested that the government shutdown had made consumers more nervous about the economy, and the final reading will confirm if that sentiment has persisted.

Broader Market Context