Nvidia Earnings to Challenge AI Rally as Fed Releases July Inflation Data

The market will turn its attention to two key events today. First, the Federal Reserve will unveil its preferred inflation gauge for July, alongside fresh figures on U.S. household income and consumption. These releases could spark a spike in volatility, especially in the EUR/USD pair and the bond market.

Second, Nvidia will close the U.S. earnings season with its fiscal Q2 2027 results—corresponding to calendar Q2 2026—after the market closes. Wall Street is pricing in revenue of roughly $93‑$95 billion, a year‑over‑year jump of about 96%, and earnings per share around $2.05‑$2.10.

Analysts will focus on data‑center revenue, the pace of the Blackwell chip ramp‑up, and the company’s guidance for the next quarter. Nvidia’s gross margin has hovered near 78% in recent quarters; any noticeable decline could signal increased competitive pressure or a loss of pricing power. Given the lofty expectations, simply meeting consensus may not be enough to sustain the stock’s upward trajectory.

The earnings call itself will be equally important. Management’s commentary could reveal whether hyperscaler spending on AI infrastructure remains robust and whether the build‑out is still accelerating.

In other market highlights, the U.S. 100 index is poised for a rally ahead of Nvidia’s results, while oil prices have dipped to $85 per barrel. Meanwhile, the Canadian dollar has lost gains against the U.S. dollar following a 50% tariff announcement.

Investors should stay alert to potential volatility in equities, commodities, and currency markets as these data points are released.