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Global Week Ahead: The "AI" King Nvidia Reports Results
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What happens across this Global Week Ahead?
• Nvidia earnings are in the spotlight • Pressure on tech stocks rises • Ukraine negotiations unfold • Prime Ministerial developments in Japan also grab attention
Next are Reuters' five world market themes, re-ordered for equity traders—
(1) Nvidia (NVDA - Free Report) ) Reports Earnings AMC on Wednesday, August 27th.
Nvidia's August 27th earnings report takes on greater significance after tech shares stumbled last week on some caution over the “AI” boom.
Its dominant position in “AI” chips has led to another soaring performance in 2025. Last month, it became the first company to top $4 trillion in market value.
Any commentary from the “AI” bellwether related to demand and spending could have broad ramifications for companies exposed to the technology.
Focus could also fall on Nvidia's deal with the Trump administration, which gives the U.S. government 15% of revenue from sales of some advanced chips in China.
U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel and other chipmakers in exchange for grants under a federal act that aims to spur factory-building in the U.S., sources say.
(2) As Tech Stocks Sell-off, World Bond Markets Send Traders Signals too
As the tech selloff grabbed headlines, renewed pressure in bond markets went a little under the radar.
• German and French 30-year bond yields this week rose to their highest since 2011 • Japanese yields are at their highest in years • U.K. long-dated bonds sold off again • U.S. 30-year yields are hovering near 5%
Sure, the reasons behind the selling are well established: debt levels are rising, so governments need to sell more bonds.
Some such as Japan need to hike rates, others including the U.S. and U.K. face still sticky inflation.
Some reckon that fast-money types could be starting to position for a crisis.
That the selling pressure on bonds continues is, in itself, a worry for governments now forking out meaningful amounts of their income on debt service payments.
The selloff could be a harbinger of what comes --in September-- when supply picks up.
(3) Defense Stocks Get Sold, as Ukraine, the U.S., the E.U., and Russia Litigate
Global defense stocks took a beating on signs that peace could return to Ukraine, although geopolitical analysts caution that it is far too soon to start pricing in a "peace dividend".
The sector has been on a tear for most of 2025, as conflicts in the Middle East and Ukraine, and U.S. pressure, prompt governments to bump up defense spending.
That has helped propel stocks like U.S.-based RTX Corp (RTX - Free Report) , the parent company of defense contractor Raytheon, roughly 35% higher so far this year.
Germany's Rheinmetall (RNMBY - Free Report) has surged +160%, and Italian aerospace giant Leonardo S.p.A. (FINMY - Free Report) , is still up +73% even after last week's selloff.
A de-escalation in the war in Ukraine could prompt further selling but not much given the global great power play taking place, strategists say.
Given that most countries are viewed as "behind the curve" on defense spending, the sector will remain in favor.
(4) Pressure Builds on Japan’s Embattled Prime Minister Ishiba to Step Down
Political paralysis in Japan is putting pressure on the bond market, with 10-year bond yields hitting the highest since 2008, and 30-year yields at all-time peaks.
Calls continue for Prime Minister Shigeru Ishiba to step down following a bruising loss in recent upper house elections, but his refusal has kept worries alive about a loosening of fiscal restraint to cater to up-and-coming opposition parties.
Things could come to a head next week, with Ishiba's ruling Liberal Democratic Party due to release a fact-finding report on the reasons for the poor poll showing by month-end.
Some observers reckon this could provide the timing for a graceful exit, as it also allows Ishiba to clear key diplomatic meetings with South Korea's leader, opens new tab this weekend and India's Narendra Modi a week later.
(5) Senegal Gets Results from an International Monetary Fund (IMF) Inquiry
West Africa's Senegal awaits the results of an International Monetary Fund mission, concluding on Tuesday, to unpick its mammoth hidden debts and move forward.
The scale of the hidden debts, which the IMF pegs at $11.3 billion, has ballooned since September 2024, when its then-new leaders first flagged the issue.
Note, Mozambique's “tuna bond” hidden debt scandal tallied up to just a few billion.
Investors are watching.
A communique could shed light on what the IMF does next, after pushing for better debt reporting across emerging markets for years.
Senegal's scandal is a black eye for the Fund, since it had a monitoring program at the time.
The IMF must now balance the need to show consequences for misreporting while avoiding punishing Senegal for openness.
Investors hope the Fund will move forward with a long-awaited misreporting waiver after the mission, paving the way for a new program. Without a waiver, Senegal could have to repay.
Zacks #1 Rank (STRONG BUY) Stocks
This week, I chose two major U.S. financial services stocks and one major French industrial.
(1) Charles Schwab (SCHW - Free Report) ): This is a $96 a share stock, with a market cap of $173.9B. It is found in the Financial-Investment industry. There is a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
The Charles Schwab Corporation is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
The company's main subsidiaries include:
• Charles Schwab & Co. (a securities broker-dealer) • Charles Schwab Investment Management (an investment advisor for Schwab's proprietary mutual funds and Schwab's exchange-traded funds), and • Charles Schwab Bank (a federal savings bank)
Schwab provides financial services to individuals and institutions through two reportable segments: Investor Services and Advisor Services.
• The Investor Services segment offers retail brokerage, investment advisory, and banking and trust services as well as retirement plan and corporate brokerage services
• The Advisor Services segment offers custodial, trading, banking and trust, and support services, as well as retirement business services to independent registered investment advisors (RIAs), independent retirement advisors and record-keepers
(2) Citigroup (C - Free Report) ): This is a $93 a share stock, with a market cap of $170.4B. It is found in the Financial-Investment Bank industry. There is a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of F.
Image Source: Zacks Investment Research
Citigroup Inc. is a globally diversified financial services holding company providing a range of financial products and services including:
• consumer banking and credit • corporate and investment banking • securities brokerage, • trade and securities services and • wealth management to consumers, corporations, governments and institutions
Citigroup has around 200 million customer accounts in more than 160 countries and jurisdictions.
Citigroup operates in North America, Asia, Latin America, and Europe, Middle East, and Africa (EMEA) regions.
(3) Schneider Electric (SBGSY - Free Report) ): This is a $50 a share French stock, with a market cap of $143.7B. It is found in the Industrial Products-Manufacturing Electronics industry. The stock hods onto a Zacks Value score of D, a Zacks Growth score of B, and a Zacks Momentum score of C.
Schneider Electric SA offers integrated solutions across multiple market segments energy and infrastructure, industrial processes, building automation, and data centers or networks, as well as in residential applications.
The Company is focused on making energy safe, reliable, and efficient.
Its power management systems offer high density metering, energy tariff optimization, power quality mitigation, local LV/MV protection & control, intelligent power & motor control, renewable energy conversion and electric vehicle recharging.
Its process and machine management system offers general machines control, packaging control and material handling control and hoisting control.
Its IT / server room management systems offer rack systems, uninterruptible power supply, cooling control and surveillance.
It also has building management systems and security management systems.
Schneider Electric S.A. is headquartered in Rueil Malmaison, France.
Key Global Macro
The July U.S. core PCE inflation print, out on Friday, is a major macro data print.
On Monday, the N.Y. Fed’s Williams gives a speech.
Germany’s IFO indices come out. Business Climate is at 88.6, Current Assessment is at 86.5, and Expectations is at 90.7.
On Tuesday, U.S. durable goods orders for July come out. The Consensus sees -4% y/y, while the prior reading was -9.3%.
The U.S. Case-Shiller home price index (HPI) comes out. The prior reading was up +2.8%y/y. Note: This is two-month stale data.
U.S. new home sales for July also come out. 0.627M was the prior month’s reading.
On Wednesday, Japan’s Foreign Bond Investment (at 313.6B yen) and Foreign Investment in Stocks (at 1,161.7B yen) come out.
On Thursday, the U.S. core Personal Consumption Expenditure (PCE) data for Q2 comes out. The prior reading was +2.5% y/y.
U.S. weekly initial jobless claims also come out. 236K is the consensus, with a 235K number in the prior week. Strong cooling here would be a notable data print.
On Friday, the U.S. core PCE price index comes out for July. The prior month’s reading remained ‘hot’ at +2.8% y/y. This is the Fed’s preferred consumer inflation reading.
Zacks Research Director Sheraz Mian supplied a S&P500 update on August 20th—
His four summary earnings points:
(1) The overall S&P500 earnings picture remains strong and steadily improving.
We saw an above-average proportion of companies beat Q2 estimates, with expectations for the current and upcoming periods also increasing.
(2) For the 472 S&P500 companies that have already reported Q2 results, total earnings are up +11.2% from the same period last year on +5.7% higher revenues.
(3) The proportion of these 472 S&P500 index members beating EPS and revenue estimates is tracking notably above the historical average for this group of companies.
The Q2 EPS beats percentage of 80.3% compares to the 20-quarter average of 77.8%, while the comparison on the revenues side is 78.8% vs. 70.8%.
(4) In terms of year-over-year growth, five sectors are expected to enjoy double-digit earnings growth in Q2:
Image: Bigstock
Global Week Ahead: The "AI" King Nvidia Reports Results
What happens across this Global Week Ahead?
• Nvidia earnings are in the spotlight
• Pressure on tech stocks rises
• Ukraine negotiations unfold
• Prime Ministerial developments in Japan also grab attention
Next are Reuters' five world market themes, re-ordered for equity traders—
(1) Nvidia (NVDA - Free Report) ) Reports Earnings AMC on Wednesday, August 27th.
Nvidia's August 27th earnings report takes on greater significance after tech shares stumbled last week on some caution over the “AI” boom.
Its dominant position in “AI” chips has led to another soaring performance in 2025. Last month, it became the first company to top $4 trillion in market value.
Any commentary from the “AI” bellwether related to demand and spending could have broad ramifications for companies exposed to the technology.
Focus could also fall on Nvidia's deal with the Trump administration, which gives the U.S. government 15% of revenue from sales of some advanced chips in China.
U.S. Commerce Secretary Howard Lutnick is looking into the government taking equity stakes in Intel and other chipmakers in exchange for grants under a federal act that aims to spur factory-building in the U.S., sources say.
(2) As Tech Stocks Sell-off, World Bond Markets Send Traders Signals too
As the tech selloff grabbed headlines, renewed pressure in bond markets went a little under the radar.
• German and French 30-year bond yields this week rose to their highest since 2011
• Japanese yields are at their highest in years
• U.K. long-dated bonds sold off again
• U.S. 30-year yields are hovering near 5%
Sure, the reasons behind the selling are well established: debt levels are rising, so governments need to sell more bonds.
Some such as Japan need to hike rates, others including the U.S. and U.K. face still sticky inflation.
Some reckon that fast-money types could be starting to position for a crisis.
That the selling pressure on bonds continues is, in itself, a worry for governments now forking out meaningful amounts of their income on debt service payments.
The selloff could be a harbinger of what comes --in September-- when supply picks up.
(3) Defense Stocks Get Sold, as Ukraine, the U.S., the E.U., and Russia Litigate
Global defense stocks took a beating on signs that peace could return to Ukraine, although geopolitical analysts caution that it is far too soon to start pricing in a "peace dividend".
The sector has been on a tear for most of 2025, as conflicts in the Middle East and Ukraine, and U.S. pressure, prompt governments to bump up defense spending.
That has helped propel stocks like U.S.-based RTX Corp (RTX - Free Report) , the parent company of defense contractor Raytheon, roughly 35% higher so far this year.
The S&P500 (SPY - Free Report) is up +9%.
Germany's Rheinmetall (RNMBY - Free Report) has surged +160%, and Italian aerospace giant Leonardo S.p.A. (FINMY - Free Report) , is still up +73% even after last week's selloff.
A de-escalation in the war in Ukraine could prompt further selling but not much given the global great power play taking place, strategists say.
Given that most countries are viewed as "behind the curve" on defense spending, the sector will remain in favor.
(4) Pressure Builds on Japan’s Embattled Prime Minister Ishiba to Step Down
Political paralysis in Japan is putting pressure on the bond market, with 10-year bond yields hitting the highest since 2008, and 30-year yields at all-time peaks.
Calls continue for Prime Minister Shigeru Ishiba to step down following a bruising loss in recent upper house elections, but his refusal has kept worries alive about a loosening of fiscal restraint to cater to up-and-coming opposition parties.
Things could come to a head next week, with Ishiba's ruling Liberal Democratic Party due to release a fact-finding report on the reasons for the poor poll showing by month-end.
Some observers reckon this could provide the timing for a graceful exit, as it also allows Ishiba to clear key diplomatic meetings with South Korea's leader, opens new tab this weekend and India's Narendra Modi a week later.
(5) Senegal Gets Results from an International Monetary Fund (IMF) Inquiry
West Africa's Senegal awaits the results of an International Monetary Fund mission, concluding on Tuesday, to unpick its mammoth hidden debts and move forward.
The scale of the hidden debts, which the IMF pegs at $11.3 billion, has ballooned since September 2024, when its then-new leaders first flagged the issue.
Note, Mozambique's “tuna bond” hidden debt scandal tallied up to just a few billion.
Investors are watching.
A communique could shed light on what the IMF does next, after pushing for better debt reporting across emerging markets for years.
Senegal's scandal is a black eye for the Fund, since it had a monitoring program at the time.
The IMF must now balance the need to show consequences for misreporting while avoiding punishing Senegal for openness.
Investors hope the Fund will move forward with a long-awaited misreporting waiver after the mission, paving the way for a new program. Without a waiver, Senegal could have to repay.
Zacks #1 Rank (STRONG BUY) Stocks
This week, I chose two major U.S. financial services stocks and one major French industrial.
(1) Charles Schwab (SCHW - Free Report) ): This is a $96 a share stock, with a market cap of $173.9B. It is found in the Financial-Investment industry. There is a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of C.
Image Source: Zacks Investment Research
The Charles Schwab Corporation is a savings and loan holding company, providing wealth management, securities brokerage, banking, asset management, custody and financial advisory services.
The company's main subsidiaries include:
• Charles Schwab & Co. (a securities broker-dealer)
• Charles Schwab Investment Management (an investment advisor for Schwab's proprietary mutual funds and Schwab's exchange-traded funds), and
• Charles Schwab Bank (a federal savings bank)
Schwab provides financial services to individuals and institutions through two reportable segments: Investor Services and Advisor Services.
• The Investor Services segment offers retail brokerage, investment advisory, and banking and trust services as well as retirement plan and corporate brokerage services
• The Advisor Services segment offers custodial, trading, banking and trust, and support services, as well as retirement business services to independent registered investment advisors (RIAs), independent retirement advisors and record-keepers
(2) Citigroup (C - Free Report) ): This is a $93 a share stock, with a market cap of $170.4B. It is found in the Financial-Investment Bank industry. There is a Zacks Value score of F, a Zacks Growth score of F, and a Zacks Momentum score of F.
Image Source: Zacks Investment Research
Citigroup Inc. is a globally diversified financial services holding company providing a range of financial products and services including:
• consumer banking and credit
• corporate and investment banking
• securities brokerage,
• trade and securities services and
• wealth management to consumers, corporations, governments and institutions
Citigroup has around 200 million customer accounts in more than 160 countries and jurisdictions.
Citigroup operates in North America, Asia, Latin America, and Europe, Middle East, and Africa (EMEA) regions.
(3) Schneider Electric (SBGSY - Free Report) ): This is a $50 a share French stock, with a market cap of $143.7B. It is found in the Industrial Products-Manufacturing Electronics industry. The stock hods onto a Zacks Value score of D, a Zacks Growth score of B, and a Zacks Momentum score of C.
Schneider Electric SA offers integrated solutions across multiple market segments energy and infrastructure, industrial processes, building automation, and data centers or networks, as well as in residential applications.
The Company is focused on making energy safe, reliable, and efficient.
Its power management systems offer high density metering, energy tariff optimization, power quality mitigation, local LV/MV protection & control, intelligent power & motor control, renewable energy conversion and electric vehicle recharging.
Its process and machine management system offers general machines control, packaging control and material handling control and hoisting control.
Its IT / server room management systems offer rack systems, uninterruptible power supply, cooling control and surveillance.
It also has building management systems and security management systems.
Schneider Electric S.A. is headquartered in Rueil Malmaison, France.
Key Global Macro
The July U.S. core PCE inflation print, out on Friday, is a major macro data print.
On Monday, the N.Y. Fed’s Williams gives a speech.
Germany’s IFO indices come out. Business Climate is at 88.6, Current Assessment is at 86.5, and Expectations is at 90.7.
On Tuesday, U.S. durable goods orders for July come out. The Consensus sees -4% y/y, while the prior reading was -9.3%.
The U.S. Case-Shiller home price index (HPI) comes out. The prior reading was up +2.8%y/y. Note: This is two-month stale data.
U.S. new home sales for July also come out. 0.627M was the prior month’s reading.
On Wednesday, Japan’s Foreign Bond Investment (at 313.6B yen) and Foreign Investment in Stocks (at 1,161.7B yen) come out.
On Thursday, the U.S. core Personal Consumption Expenditure (PCE) data for Q2 comes out. The prior reading was +2.5% y/y.
U.S. weekly initial jobless claims also come out. 236K is the consensus, with a 235K number in the prior week. Strong cooling here would be a notable data print.
On Friday, the U.S. core PCE price index comes out for July. The prior month’s reading remained ‘hot’ at +2.8% y/y. This is the Fed’s preferred consumer inflation reading.
Zacks Research Director Sheraz Mian supplied a S&P500 update on August 20th—
His four summary earnings points:
(1) The overall S&P500 earnings picture remains strong and steadily improving.
We saw an above-average proportion of companies beat Q2 estimates, with expectations for the current and upcoming periods also increasing.
(2) For the 472 S&P500 companies that have already reported Q2 results, total earnings are up +11.2% from the same period last year on +5.7% higher revenues.
80.3% beat EPS estimates. 78.8% beat revenue estimates.
(3) The proportion of these 472 S&P500 index members beating EPS and revenue estimates is tracking notably above the historical average for this group of companies.
The Q2 EPS beats percentage of 80.3% compares to the 20-quarter average of 77.8%, while the comparison on the revenues side is 78.8% vs. 70.8%.
(4) In terms of year-over-year growth, five sectors are expected to enjoy double-digit earnings growth in Q2:
• Retail (+13.1%)
• Finance (+14.0%)
• Aerospace (+26.6%)
• Tech (+20.7%), and
• Consumer Discretionary (+135.2%)
On the negative side, six sectors are expected to earn less in Q2 relative to the year-earlier period, with double-digit declines at the
• Energy (-16.8%)
• Construction (-11.1%), and
• Autos (-23.3%) sectors
Alas, that is backward-looking data, unfortunately.
That’s it for me.
Enjoy this week in trading and investing,
John Blank, PhD.
Zacks Chief Equity Strategist and Economist