Wall Street Brunch: Nvidia Time

Company Earnings - Nvidia is set to report earnings this week, with consensus expectations for EPS of $1.01 and revenue of $46 billion, despite a minimal impact from the temporary ban on H20 processors to China [3] - Analysts express bullish sentiment towards Nvidia due to accelerating AI tailwinds and the company's industry dominance, viewing the recent pullback as a buying opportunity [4] - Concerns are raised about the sustainability of the AI bubble, with some analysts suggesting that capital returns from AI hardware may be limited and that Nvidia's growth could be constrained if the bubble bursts [5][6] Economic Indicators - Following Fed Chairman Jay Powell's recent speech, the odds of a quarter-point rate cut in September have risen to 75%, with expectations of further cuts by the end of the year [7] - Economists predict a 0.3% rise in the core PCE price index, which would increase the annual rate to 2.9%, the highest since February, indicating potential inflationary pressures [8] Shipping and Trade - European postal services are pausing shipments to the U.S. due to uncertainty regarding package exemption rules, affecting countries like Germany, Denmark, Sweden, and Italy [9]