Wall Street is heading into a crucial week, with investors closely tracking Nvidia’s quarterly earnings, artificial intelligence (AI) company Anthropic’s proposed initial public offering (IPO) and the release of the Federal Reserve’s October meeting minutes. These developments, along with key US economic indicators and corporate earnings, are expected to influence sentiment across American stock markets.
Nvidia’s earnings announcement on Tuesday will be among the biggest events of the week, as investors look for indications that demand for AI infrastructure remains strong amid concerns over the sustainability of massive investments in the sector.
Meanwhile, Anthropic’s proposed stock market debut and fresh signals on the US economy could add to market volatility.
Nvidia Earnings
The US semiconductor giant is scheduled to announce its fiscal third-quarter results on Tuesday.
According to LSEG data, analysts expect Nvidia to report earnings growth of around 90% on revenue of approximately $109 billion.
Investors will particularly focus on the company’s outlook for AI-related spending and demand for its advanced chips, which have been at the centre of the global AI investment boom.
Nvidia shares came under pressure last week amid controversies surrounding its longtime chief executive and co-founder Jensen Huang, according to the developments outlined in the report.
The company’s market capitalisation has also declined significantly. LSEG data showed that Nvidia’s valuation fell from approximately $5.8 trillion in early October to $3.9 trillion as of Friday.
The latest results could provide investors with a clearer picture of whether the massive spending on AI infrastructure is translating into sustained demand for Nvidia’s products.
Anthropic IPO
Anthropic’s proposed IPO will be another major event for investors during the week.
The company, which developed the Claude artificial intelligence chatbot, is expected to open its IPO on Wednesday, with its shares likely to begin trading on Thursday.
The offering is expected to be priced in the range of $70-$78 per share. At the upper end of the proposed range, Anthropic could command a fully diluted valuation of approximately $1.4 trillion.
The company’s investors are looking to raise as much as $64.4 billion through the sale of 825 million shares.
The listing comes at a time when investor confidence in the AI trade has become increasingly uncertain. Concerns have emerged over whether the enormous capital expenditure by technology companies on AI infrastructure can generate sufficient returns.
Political developments have also added to regulatory uncertainty surrounding the expansion of AI data centres.
Fed minutes, retail sales data in focus
On the economic front, investors will monitor several important developments, including a speech by Federal Reserve Chair Kevin Warsh on Monday, US retail sales data on Tuesday and minutes of the Federal Open Market Committee’s October meeting on Wednesday.
Market expectations of another Federal Reserve rate increase in December have strengthened following stronger-than-expected employment figures and higher-than-anticipated inflation.
The October retail sales report will offer insights into the health of American consumers and help investors assess whether inflationary pressures are continuing to build.
The FOMC minutes could provide further clues about policymakers’ assessment of inflation, economic growth and the future direction of interest rates.
Walmart, Disney and other US companies announcing earnings
Apart from Nvidia, investors will track quarterly earnings from several major American and international companies.
The earnings calendar includes retail giants Walmart, Home Depot and Target, entertainment company Walt Disney, cybersecurity firm Palo Alto Networks, and Chinese technology companies Alibaba, Baidu and XPeng.
Their financial results and management commentary could provide additional insights into consumer spending, corporate demand and the broader global economic outlook.
