Markets Rebound but Log Weekly Losses as Nvidia Earnings Loom

Major indexes rebounded Friday but closed the week lower, with all eyes on Nvidia earnings and Fed Chair Warsh's Jackson Hole speech next.

The Dow Jones Industrial Average rose 1.0% to 53,277 on Friday, and the S&P 500 gained 0.4% to 7,674, while the Nasdaq Composite advanced 0.4% to 26,180, according to Kiplinger. Investor's Business Daily corroborates that the major indexes finished strong, recovering from a sharp sell-off in the prior session. Despite Friday's gains, all three major indexes posted weekly losses.

Although the Dow added 517 points on Friday, it still finished the week lower by 0.8%, per Kiplinger. The S&P 500 lost 1.4% for the week, and the Nasdaq Composite narrowed its weekly decline to 2.1%. Kiplinger notes Daniel Skelly of Morgan Stanley Wealth Management observed that the S&P 500 pullback after its early-August breakout to new record highs is not surprising, but that tech softness added significance to the move.

Treasury yields rose across the maturity spectrum, reflecting growing concerns about persistent inflation and government debt, according to Kiplinger. The 2-year yield rose to 4.232% from 4.185% on Thursday. The 10-year climbed to 4.736% from 4.698%, and the 30-year increased to 5.274% from 5.237%. Investor's Business Daily reports yields were steady Friday morning after the Treasury's debt buyback plan flops.

Nvidia is scheduled to report fiscal second-quarter results on August 26 after market close, with the company expecting revenues of approximately $91 billion, according to The Globe and Mail. Kiplinger reports Wall Street expects year-over-year earnings growth of 99.0% on revenue growth of 97.0%. Susquehanna analyst Christopher Rolland writes that AI demand is supported by increasing hyperscale capex plans, with the top five hyperscalers expected to nearly double capex spend in 2026.

Robinhood Markets led the S&P 500 with a 12.9% gain after President Donald Trump advocated for federal crypto legislation, specifically the Clarity Act, at a White House summit, according to Kiplinger. Coinbase Global rose 8.2% and Strategy gained 6.1% on the endorsement. Investor's Business Daily reports that an appetite for risk among investors lifted bitcoin to a three-month high, bolstering crypto-related names.

Fed Chair Kevin Warsh will deliver the keynote address at the Kansas City Fed's annual Jackson Hole Economic Symposium on Friday, August 28, per Kiplinger. University of Pennsylvania Wharton School Professor Patrick Harker, a former Philadelphia Fed president, stated that Warsh will have to address the elephant in the room: inflation. Kiplinger also notes Louis Navellier wrote that investor optimism is expected to be sky-high next week due to anticipation of Nvidia's results and the Jackson Hole conference.