Wall Street Week Ahead: Skittish tech stock investors turn to Nvidia results for next cues

Core Viewpoint - The S&P 500 index ended the week flat after a volatile period, with concerns about the economic outlook and U.S. interest rates overshadowing optimism from the end of the government shutdown [1] Group 1: Market Performance - The Cboe's VIX index, a measure of market volatility, reached its highest level in about a month, indicating increased investor anxiety [1] - The S&P 500 tech sector has struggled recently, while other sectors like healthcare, materials, and financials have shown solid gains [10] Group 2: Nvidia's Role in the Market - Nvidia is considered the "epicenter" of AI infrastructure expansion, and its upcoming earnings report is crucial for the tech sector and related industries [2][11] - Nvidia shares have increased approximately 1,000% since the launch of ChatGPT in November 2022, with a year-to-date gain exceeding 40% [3][11] - Analysts expect Nvidia to report a 53.8% year-over-year increase in fiscal third-quarter earnings per share, with projected revenue of $54.8 billion [5][11] Group 3: Future Expectations - Analysts have raised their revenue expectations for Nvidia's fiscal 2027 to about $285 billion, reflecting a 15% increase since late May [6][11] - Investors are looking for positive guidance from Nvidia regarding demand and spending trends, especially in light of significant capital expenditures from major companies like Microsoft and Amazon [7][12] - There is a growing demand for proof of concept regarding returns and cash flows from AI investments, indicating a shift in investor sentiment [9][12]