Dow Jones, Nasdaq, and S&P 500 Weekly Preview: Nvidia Earnings Report Takes Center Stage

Investing.com - U.S. stocks closed higher on Friday after the Supreme Court ruled that President Donald Trump’s tariffs were unconstitutional, a decision that could ease corporate cost pressures and alleviate market concerns about ongoing U.S. economic inflation.

The S&P 500 rose 0.69%, closing at 6,909.51 points, the Nasdaq Composite increased 0.9% to 22,886.07 points. The Dow Jones Industrial Average gained 230.81 points, up 0.47%, finishing at 49,625.97 points. The blue-chip index initially fell about 200 points following the release of weak economic data but then rebounded.

The Supreme Court overturned most of Trump’s broad tariff plans under the International Emergency Economic Powers Act, with the majority opinion ruling that the law “did not authorize the president to impose tariffs.” Trump subsequently announced plans to introduce a new 10% global tariff.

This week, the Dow rose slightly by 0.3%, the S&P 500 increased by 1.1%, and the tech-heavy Nasdaq gained 1.5%, ending a five-week losing streak.

While most of this week’s attention will focus on Nvidia’s earnings report, investors will also digest a new round of economic data released over the coming days, including the Producer Price Index, Consumer Confidence Index, initial unemployment claims, and regional Federal Reserve surveys.

Nvidia Earnings Week Approaches

Investors will closely watch the performance of Nvidia Corp, the AI industry benchmark, this week.

Nvidia’s stock surged over 1,500% from the end of 2022 to the end of last year. As of Thursday, the stock has risen about 0.8% in 2026.

The other members of the “Big Seven” in the current bull market have performed more modestly this year. This AI chip giant alone has a significant impact on major benchmark indices, accounting for about 7.8% of the S&P 500.

In addition to Nvidia, Wall Street will focus on earnings reports from other tech stocks, especially those software companies facing increasing concerns that AI could disrupt their business models.

During this industry AI transformation, the performance of Salesforce and Fast Group is expected to attract high attention. AI infrastructure companies Dell and CoreWeave also plan to release earnings.

“To date, Q4 earnings have exceeded market expectations, with upward revisions to profit forecasts in the U.S. and Europe,” said a Morgan Stanley strategist in a report.

Beyond the tech sector, as the Q4 earnings season nears its end, investors will review earnings reports from retailers Home Depot and Lowe’s.

Analysts’ Views on U.S. Stocks

JPMorgan: “We still believe that the trade-off between growth and inflation in 2026 will be attractive, with earnings and economic activity performing positively on one hand, and bond yields, moderate inflation, and a dovish Fed stance on the other. The strong stock rally could lead to risk-off events, especially when technicals are overextended, and if some adverse geopolitical news emerges, such as potential escalation in Iran or the latest tariff headlines. However, we believe these will not last long, as long as the macro environment remains as described above, and should be viewed as buying opportunities.”

Evercore ISI: “Market dislocation is creating opportunities for investors to access AI themes, which are expected to deliver structural outperformance as companies continue investing in efficiency to cope with a tightening labor market and rising protectionism. Evercore ISI fundamental analysts highlight their preferred stocks, which are benefiting from or will benefit from rising AI adoption, and have defensible moats against potential disruptors. These include MSFT, SNOW, PANW, AMZN, BKNG, CHRW, WAY, APO, among others.”

Royal Bank of Canada Capital Markets: “The latest tariff developments do not materially impact our long-term outlook for the U.S. stock market, and we remain constructive on U.S. equities over the next year.”

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