This week, financial markets brace for key events, including Nvidia’s highly anticipated earnings report and crucial US inflation data. Nvidia, a major AI industry player, is expected to post impressive revenue growth, with investors closely watching AI demand trends. Meanwhile, the Fed’s preferred inflation gauge, the PCE index, will influence monetary policy expectations. Global political and economic developments, including European inflation data and US budget discussions, add further complexity. The combination of these factors could lead to heightened market volatility, making this a crucial period for investors.
This Week’s Major Events in the Financial Markets: Between Nvidia and Inflation
Financial markets are about to experience a crucial week, marked by several key events that could shape future trends. Between Nvidia’s much-anticipated results and new inflation data, investors will have to navigate a complex economic and political backdrop.
The Moment of Truth for Nvidia and AI
The highlight of the week will undoubtedly be the publication of Nvidia’s results on Wednesday after the markets close. The semiconductor giant, a true barometer of the artificial intelligence sector, is expected to post impressive performances. Analysts expect revenue of $38.26 billion, a spectacular 73% year-on-year growth, and adjusted earnings per share of $0.84.
Beyond the numbers, investors will be particularly scrutinizing management’s comments on the demand for AI chips and the changing competitive landscape, especially in the face of the emergence of new players such as DeepSeek in China. The market’s reaction to these results could set the tone for the entire tech sector.
Inflation at the Heart of Concerns
On Friday, the focus will be on the PCE (Personal Consumption Expenditures) index, the US Federal Reserve’s preferred inflation indicator. Forecasts suggest a deceleration in core inflation to 2.6% year-on-year in January, from 2.8% previously, with a monthly increase expected to be 0.3%.
This data is of paramount importance because it could significantly influence the timing of future interest rate cuts by the Fed. Lower-than-expected inflation could revive hopes for faster monetary easing.
A Charged Political and Economic Context
The economic panorama is enriched by several notable events in Europe, with the publication of inflation figures in Germany and France. These data will be closely scrutinized by the European Central Bank in its reflection on its monetary policy.
On the political front, discussions around Ukraine are taking on a new dimension with meetings planned between Emmanuel Macron, Keir Starmer and Donald Trump. Meanwhile, in the U.S., the budget reconciliation process and Republican efforts to pass a budget add an additional layer of uncertainty.
Implications for Markets
This week promises to be particularly rich in potential catalysts for financial markets. The combination of Nvidia’s results, inflation data, and political developments could generate increased volatility. Trump’s proposed policies, particularly on trade, are an additional factor of uncertainty that investors will need to incorporate into their strategies.
Faced with these multiple challenges, caution is still required. Investors will need to remain particularly attentive to developments on all of these fronts, as each of them could have a significant impact on global financial markets.
This pivotal period may well set trends for the coming weeks and months, underscoring the importance of close monitoring and rigorous risk management in this highly dynamic environment.
