The Week in One Thought

Tech bounced on strong earnings, but inflation and the Fed kept the market from getting too comfortable.

The major indexes finished the week with modest gains after Nvidia sparked a strong Thursday rally. Friday cooled things off as Fed Chair Kevin Warsh kept the focus on inflation and the possibility of another rate hike.

The Market: A Positive Week, but Not a Clean One

The S&P 500 gained about 0.5% for the week and the Nasdaq added roughly 0.9%. Friday ended slightly lower after Warsh's Jackson Hole comments pushed rate expectations higher.

+0.5%S&P 500 for the week
+0.9%Nasdaq for the week
$217.55NVDA Friday close

Inflation and Jackson Hole Kept Rates in Focus

July PCE inflation came in at 3.7% year over year, slightly hotter than expected, while second-quarter GDP remained at a 1.5% annualized pace. On Friday, Warsh said the Fed still has work to do if inflation does not move clearly toward the 2% target.

That pushed expectations for a September rate hike higher and put some pressure back on stocks into the end of the week.

Dagger Take

Strong earnings can move the market fast. So can rates.

Thursday's tech rally showed buyers are still willing to chase strong results. Friday was the reminder that inflation and Fed policy can change momentum just as quickly.

NVDA: Strong Earnings, Strong Rally, Then Friday Weakness

Nvidia beat second-quarter revenue and profit expectations and surprised the market with a forecast calling for roughly 70% revenue growth next fiscal year. The stock surged Thursday and helped lift the broader semiconductor and AI trade.

Friday was a different story. NVDA pulled back and closed at $217.55, breaking below several key support levels we had been watching in the Spotlight.

Another development worth noting: Nvidia reportedly paused some revenue-sharing deals with AI cloud companies amid concerns around the structure of the program. The broader program remains in place, but the news added another item for investors to watch after earnings.

Read the NVDA Living Spotlight

MRVL: Good Results, Tough Reaction

Marvell raised its longer-term revenue outlook and continued to point to strong AI data-center demand, but the stock sold off Friday. Investors focused on how long it may take for the company's new Google custom-chip deal to meaningfully contribute to revenue.

It was another good example of why the headline numbers alone do not determine the reaction.

What the Week Taught Us

Nvidia proved the AI trade still has plenty of power, but Friday showed how quickly macro pressure can interrupt momentum. The market finished the week higher, but traders still have to respect both company-specific catalysts and the rate backdrop.

Good news matters. The reaction matters more.

Next Week

Jobs data and Broadcom move into focus.

The August jobs report and Broadcom earnings are among the next major tests for a market still balancing strong AI demand against sticky inflation and rate uncertainty.

Sources

Content is educational and informational only and is not financial advice.