Stocks closed mostly higher yesterday with all of the big three indexes in the green.

Chip stocks rebounded yesterday ahead of this afternoon's earnings report by NVIDIA.

They are expected to positively surprise once again. They have posted a positive EPS surprise in each of the last 4 quarters, and a positive sales surprise in each of the last 30 quarters. Moreover, they have posted spectacular earnings growth (quarter vs. same quarter a year ago) for 3 years straight. Over the last 12 quarters, they produced 1 quadruple-digit growth rate (1,009%), 6 triple-digit growth rates (681%, 655%, 559%, 160%, 107%, 143%), and 5 double-digit growth rates (73%, 33%, 52%, 59%, 85%). Their last outing was a 143% growth rate.

The AI trade, of course, is much larger than just NVIDIA. But they are a key AI-bellwether, and all eyes will be on NVIDIA to gauge AI demand ? chip demand and data center demand, etc. Their results could ripple across not just the tech sector, but the broader market. They will release their results after the close.

Aiding stocks yesterday were falling oil prices (down roughly -5%), and falling Treasury yields (5-yr, 10-yr and 30-yr yields were each down approximately 5-6 basis points).

The market was also positioning ahead of this morning's Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge.

While there has been plenty of worry lately over the possibility of rising inflation, recent reports have shown inflation pressures easing, even the headline number, which includes the volatile energy market. The PCE report the last time out showed headline inflation ease to 3.7% vs. the previous month's 4.1% pace, with the core rate (ex-food & energy), coming in at 3.3% vs. the previous month's 3.4%.

Today's report is expected to show headline inflation at 0.1% m/m vs. last month's -0.1%, with the y/y rate at 3.6% vs. last month's 3.7%. The core rate is expected to come in at 0.2% m/m vs. last month's 0.1%, with the y/y rate at 3.3%, in line with last month's 3.3% pace.

But the economic reports won't stop there. We'll also get MBA Mortgage Applications, Durable Goods Orders, Corporate Profits, Retail and Wholesale Inventories, the EIA Petroleum Status Report, and the Survey of Business Uncertainty.

We'll also get the second estimate for Q2'26 GDP. The first estimate was 1.5%, with this one expected to show the same.

FYI ? Q3'26, according to the GDPNow forecast by the Federal Reserve Bank of Atlanta, is estimated at a robust 4.0% growth rate. If true, that would be the second 4% print within the last 5 quarters (Q3'25 was 4.4%).

Later this week, traders will also be watching for any market moving news out of the Jackson Hole Economic Symposium (8/27-29). This will be Fed Chairman Kevin Warsh's first Jackson Hole speech. But there will be other central bankers and policymakers and economists from around the world speaking. There's plenty to talk about. And with yields rising globally (it's not just in the U.S.), the market will be listening.

In the meantime, and as always, the market will also be watching for any news out of the Middle East.

Should be a jam-packed day today.

See you tomorrow,