Tech Tumbles, All Eyes on Nvidia (NVDA)

Market Overview - The tech sector experienced a significant decline, with the Nasdaq Composite dropping by 2.5% and the S&P 500 by 1.2% due to profit-taking and high valuations concerns [1] - Federal Reserve Chairman Jerome Powell's remarks on potential interest rate cuts led to a recovery in major indices, with the S&P 500 and Dow Jones Industrial Average ending the week higher, the latter reaching an all-time high [3] Company-Specific Insights - Palantir's stock reached a record high of $190 following strong Q2 earnings, but an overheated P/E ratio of 193 caused investor retreat [2] - Nvidia is expected to report significant year-over-year growth in Q2, with EPS projected to rise by 47% and revenue by 53%, driven by demand for their Blackwell Ultra chip [4] - Concerns regarding Nvidia's revenue from China have emerged, with potential exclusion of direct revenue due to pending license approvals and evolving export controls [5] Retail Sector Performance - TJX Companies reported better-than-expected Q2 results, benefiting from lower tariff exposure and value-seeking consumers [6] - Ross Stores also exceeded EPS expectations and provided positive guidance for Q3 [7] - Specialty and apparel retailers face challenges, with Citi downgrading Abercrombie & Fitch, Gap, and Urban Outfitters due to tariff risks and inventory management issues [9] Upcoming Earnings - A total of 1,383 companies are set to report earnings next week, with 79% of companies in the universe having reported thus far [10] - The next earnings season will begin on October 14, featuring major banks like JPMorgan, Citigroup, and Wells Fargo [10]