Global equities experienced a modest uptick as the market eagerly anticipates a pivotal earnings release from Nvidia Corp., a major player valued at $3 trillion and leading the global surge in artificial intelligence technology.

Nvidia is widely regarded as a key indicator of AI investment trends across the tech sector. Market expectations are high, with projections pointing to more than a 70% revenue growth for the current quarter. Any deviation from these expectations could significantly impact market stability due to Nvidia’s substantial influence on US stock indexes.

This year, Nvidia’s stock has skyrocketed by approximately 160%, vastly surpassing the Nasdaq 100’s 16.4% increase. The options market suggests a potential swing of nearly 10% in either direction following the earnings announcement.

Futures for both the Nasdaq and the S&P 500 showed a slight increase of about 0.1%, while Europe’s Stoxx 600 index climbed by 0.3%.

“The anticipation surrounding Nvidia’s results has elevated them to a macroeconomic event, comparable to the impact of payrolls and CPI releases,” commented Justin Onuekwusi, Chief Investment Officer at wealth management firm St James Place. “Given the significant investments and leverage tied to Nvidia and similar companies, even a minor disappointment could trigger substantial market volatility.”

The timing of Nvidia’s earnings report and future guidance is particularly critical as markets navigate concerns about a potential US recession and the Federal Reserve’s capacity to reduce interest rates swiftly enough to achieve a soft economic landing. Current money market pricing suggests an expected interest rate cut of approximately 100 basis points this year, beginning in September.

Despite a 0.2% rise in the dollar against a basket of currencies on Wednesday, it remains on track for its steepest monthly decline this year, driven by speculation around rate cuts. US Treasury yields remained relatively stable.

The yen continued its decline against the dollar following remarks from Bank of Japan Deputy Governor Ryozo Himino. He emphasized that while the BOJ is prepared to raise interest rates if inflation aligns with their forecasts, they must remain exceptionally vigilant to market developments.

In individual stock movements, Nordstrom Inc. saw a 6% increase in US premarket trading after issuing an unexpectedly strong adjusted earnings-per-share forecast. Conversely, Super Micro Computer Inc. shares dipped following a statement from Hindenburg Research revealing its short position on the server equipment manufacturer.

In Europe, GSK Plc experienced gains after the Delaware Supreme Court agreed to review a lower court decision concerning litigation over its Zantac heartburn medication.

Bitcoin fell below the $60,000 mark amid a broader cryptocurrency market pullback, which also saw a sharp decline in Ether, the second-largest token. In commodities, gold prices retreated after a three-day rally that brought it close to its all-time high.

Key events scheduled for this week include several economic indicators and corporate earnings reports that will further shape market sentiment.