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Key Focus Points for Traders This Week

Key Focus Points for Traders This Week, Markets are eagerly anticipating the upcoming earnings report of NVIDIA ($NVDA), scheduled for Wednesday after the market closes. With its remarkable growth and association with the thriving AI sector, the stock has secured a prominent position in the stock market and within the risk-on environment. Despite its seemingly high valuation, bullish sentiment prevails, attributing the valuation to the unprecedented advancements facilitated by artificial intelligence. According to consensus estimates, the company is expected to report earnings of $2.07 per share, accompanied by revenue totaling $11.09 billion. Additionally, whisper numbers suggest a potentially higher earnings figure of $2.13 per share. This earnings announcement is poised to provide valuable insights into the continued trajectory of this market-leading entity.


Anticipation is building as Federal Reserve Chairman Jerome Powell is set to deliver a speech from Jackson Hole, Wyoming, on Friday. Against a backdrop of recent hawkish minutes, China's economic challenges, and yields reaching multi-decade highs, Powell's address carries significant weight in steering market sentiment leading up to the September Fed meeting. As his speech unfolds at 10:05am ET, investors will keenly assess his insights to gauge the likelihood of a Fed rate hike and gain valuable guidance for the weeks ahead.


The challenges faced by the second-largest global economy, China, have grown considerable. Yet, China's distinctive authoritarian governance enables them to wield the power of monetary printing without the same legislative constraints faced by the United States. As deflationary pressures mount, China's capacity to infuse significant capital into its economy is amplified, setting the stage for potential substantial monetary measures. The anticipation of an imminent economic stimulus package in the early days of the week is plausible as authorities endeavor to curtail growing concerns. Such a proactive approach is likely to resonate positively with U.S. markets, possibly sparking enthusiasm over the prospects of a substantial stimulus package.


The TLT ETF appears to have formed a potential short-term bottom, characterized by a double bottom pattern on the weekly chart. The iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund that seeks to track the performance of the ICE U.S. Treasury 20+ Year Bond Index. This ETF focuses on providing investors with exposure to long-term U.S. government bonds.


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