Last week, the Dow Jones index and S&P 500 fell as fears about the American economic situation grew following Moody’s downgrading of the US credit rating. The indices also fell after the House approved the Big Beautiful Bill, which increases the deficit. The article examines the main catalysts for the movement of the two indexes in the coming week.
NVIDIA Earnings
NVIDIA’s earnings report on Wednesday will have the greatest impact this week.
NVIDIA is the third largest company in the entire world, so these results are significant. The company has become the face of the artificial intelligence industry.
Signs that the company is growing quickly will indicate that the AI bubble still hasn’t burst. Analysts predict that revenue will increase by 65%, to $43 Billion. Analysts also anticipate that the company’s forward guidance for its second quarter will be between $45.68 and $200 billion.
As always, NVIDIA will likely have higher revenues than anticipated. The quarterly revenue could be $45 billion.
NVIDIA is expected to earn 73 cents per share, up from the previous estimate of 61 cents. Since 2022, it has exceeded its forecasts in every quarter.
Costco is one of the top five companies which could move Dow Jones or S&P 500.
Federal Reserve minutes
On Wednesday, the Federal Reserve will publish the minutes from its last meeting. This is the other major catalyst that could affect the indexes.
The minutes of the meeting will give you more information about what was discussed and decided at that time.
The Fed has stated that it will not rush to reduce interest rates because they believe Trump’s tariffs are going to increase inflation over the next few months.
The FOMC Minutes are not likely to move US Stocks this time. This is because the majority of analysts believe that the bank’s interest rate will be cut for the first ever time in September.
Dow Jones, S&P 500 react to Trump’s trade talk
Donald Trump’s threat to impose a tariff of 50% on European products sent US stocks plummeting on Friday. These tariffs could have a significant impact on US stock prices, as many US companies conduct a large amount of business with Europe.
Ryanair is the biggest Boeing customer. This European airline has even threatened to cancel orders in case of high tariffs. Google, Meta and other tech companies do business in Europe.
Analysts believe Trump uses the threat of tariffs as a negotiation tactic.
Big Beautiful Bill
Washington is another important factor for S&P 500, Dow Jones, and the Dow Jones Industrial Average. The House of Representatives passed the Big, Beautiful Bill in Washington last week, just a few weeks after Moody’s slashed its credit rating.
The focus will shift to the Senate where Republicans continue their deliberations on the bill passed by the House. The bill could cause more stock declines due to the rising US debt.
The Top 4 Catalysts for Dow Jones and S&P 500 This Week may change as new information becomes available
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