Nvidia Earnings or Powell's Jackson Hole Speech? What's More Important For Markets
Two themes dominating markets in 2023 -- artificial intelligence and interest rates -- threaten to collide this week with Nvidia earnings and the Jackson Hole economic symposium. With risks skewed to the downside, investors should look past short-term tech hype and fear the Federal Reserve.Wall Street's bullishness over Nvidia has reached fever pitch, with many analysts upping their estimates ahead of the chipmaker's earnings due Wednesday and betting it will rejuvenate a rally in the wider stock market and tech sector."We expect a bullish outlook from Nvidia that should be the fuel in the engine to continue this tech rally into the rest of the year despite the tough talking Fed," said Dan Ives, an analyst at broker Wedbush, exemplifying the mood among tech bulls."You get the sense that a lot is hanging on Nvidia delivering blistering numbers and a very strong outlook. Imagine buying Nvidia at [a valuation of] 244 times trailing earnings -- you have to be feeling lucky," said Neil Wil