Market focus turns from Nvidia results to US economy

TOKYO

Market attention has turned to upcoming data on the U.S. economy after Nvidia reported its financial results .

Nvidia, one of several companies that have ridden a wave of enthusiasm over artificial intelligence developments, reported earnings on Aug. 28.

The results showed a strong profit, but Nvidia stock fell 2.1 percent, though it is up 153 percent for the year.

The company reported a net income of $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122 percent from a year ago and 15 percent from the previous quarter.

The company is one of the most influential stocks on Wall Street, with a total market value topping $3 trillion.

Attention now turns back to the U.S. economy, with data this week and next possibly playing a role in how far the Federal Reserve goes in cutting interest rates.

The U.S. government will release today its latest data on inflation with the PCE, or personal consumption and expenditures report, for July.

Economists expect the PCE, which is the Federal Reserve’s preferred measure of inflation, to show that inflation edged up to 2.6 percent in July from 2.5 percent in June.

Boss Jerome Powell said last week that they would have to start coming down as the jobs market softens and inflation eases, but he did not provide any guidance on how big an expected reduction in September will be.

Readings on gross domestic product, jobless claims are among this week's readings, while the crucial non-farm payrolls report is due Sept. 6.