This week, NVIDIA's earnings report is coming in strong, followed closely by the financial reports of retailers such as Lowe's.

Zhitong App has learned that Nvidia (NVDA.US), the star of the AI industry in the US stock market, is expected to release its earnings report on Tuesday in 2023, which will be the focus of investors this week. Other companies such as Lowe's (LOW.US), Deere & Company (DE.US), Best Buy (BBY.US), and Zoom (ZM.US) are also expected to release their earnings reports this week. In terms of economic data, the main focus this week is expected to be on the University of Michigan Consumer Sentiment Index and manufacturing data. The stock market will be closed on Thursday for Thanksgiving.

It is understood that the major corporate event this week will be Nvidia's earnings report, which will have an impact on the entire market. At the end of May this year, the company's performance far exceeded expectations, leading to a peak in the AI boom this year. However, this momentum seemed to cool down at the end of the second quarter, with many of the so-called "Big Seven" stocks falling along with the overall market in the beginning of the third quarter.

However, Nvidia's stock has recently once again taken on the role of market leader, rising more than 20% since early November. As of the close of last week, Nvidia's stock has risen nearly 240% year-to-date.

According to data from S&P Global Market Intelligence, Wall Street expects the company's revenue for this quarter to reach $16.11 billion, with adjusted earnings per share of $3.39.

In a preview report on the release of the earnings report, Bank of America research analyst Vivek Arya wrote, "We expect Nvidia's earnings report to exceed market expectations and point out that seasonal trends remain favorable."

In addition, a recent report from Goldman Sachs showed that the "Big Seven" tech stocks currently account for nearly 30% of the S&P 500 index and have dominated most of the gains in the index this year.

As a whole, the "Big Seven" have risen by about 70% this year, while the rest of the 493 constituent stocks of the S&P 500 index have seen gains of around 6%. As of the close of last Friday, the index has accumulated a 17.5% increase this year.

It is worth mentioning that the drama surrounding Sam Altman's resignation from OpenAI, the maker of ChatGPT, and the potential return, which began on Friday night last week, will also be a focus of attention, considering the role played by the AI boom in catalyzing this year's market rebound and Microsoft's large-scale investment in this AI startup.

In terms of other companies, as Best Buy, Lowe's, and Deere & Company all release their earnings, investors will digest another perspective on consumer-related matters.

In terms of macroeconomics, investors will interpret the unexpected October inflation data released last week, which showed that the rate of consumer price increases was lower than expected, as a sign that the Federal Reserve may have stopped raising interest rates and may have successfully achieved a "soft landing," with inflation falling back to the Fed's 2% target without an economic recession.

However, economists warn investors not to celebrate this result too early. Among them, Michael Pearce, Chief US Economist at Oxford Economics, believes that while he agrees that interest rates are unlikely to rise further, he believes that the Fed's battle against inflation is not yet over. In a research report last week, Pierce wrote, "Although there may be more good news in the coming months regarding housing and core commodity prices, it is not enough to convince the Federal Reserve that inflation is on a sustained path to reach 2%. This would require further softening in the labor market, which could be a long process and would keep the Federal Reserve on hold until the second half of next year."

Last week, the US stock market rose across the board as unexpectedly low inflation data for October put the market on an upward trend. Since early November, all three major indices have risen, with the Nasdaq up about 10%, the S&P 500 up nearly 8%, and the Dow Jones up nearly 6%.