Global highlights next week: NVIDIA Corporation (NVDA.US) will release their important financial report, and the Federal Reserve will release their preferred inflation indicators.

After Federal Reserve Chairman Powell opened the door to rate cuts at the central bank's earliest meeting in September, risk assets rebounded sharply on Friday, with the Dow Jones Industrial Average hitting its first closing record of the year and the S&P 500 ending a five-day decline. Investors had originally bet that the central bank governor would be cautious, but Powell's speech instead highlighted the fragility of the labor market and hinted that the Fed may change its wait-and-see attitude. Looking ahead to next week, the performance of the AI chip manufacturing giant NVIDIA Corporation (NASDAQ: NVDA) is in the spotlight - this earnings report is not only related to its own stock price, but also seen as a "touchstone" to test the entire AI trading logic. If it falls short of expectations, the tech sector will restart a selling trend. According to LSEG data, NVIDIA Corporation is expected to achieve revenue of $45.9 billion in the second quarter, with a year-on-year increase in earnings per share of 48%. With its absolute advantage in AI chips, NVIDIA Corporation's stock price has skyrocketed in recent years, supporting not only the tech sector but also the entire market. Last month, NVIDIA Corporation became the first company in the world with a market value exceeding $400 billion. Miller Tabak's chief market strategist Matthew Maley said, "When the entire tech sector is in turmoil, the earnings of AI leaders will be scrutinized, with a much bigger impact than usual." Maley warned that considering the weight of the tech sector in the market, if tech stocks continue to fall, it will be difficult for the stock market to maintain its upward momentum. Raymond James strategist Matt Orton pointed out that NVIDIA Corporation has almost become synonymous with the AI market, and its performance will quickly spread to the entire AI industry chain, which has been a major driver of the S&P 500's rise this year. Analysts said that the recent weakness in tech stocks is due to cautious sentiment about the prospects of the AI industry. For example, OpenAI CEO Sam Altman warned investors against being overly excited about AI, as there is already an obvious bubble in the market; in addition, a study by researchers at MIT also raised questions about the return on AI investments. However, cloud giants like Alphabet Inc. Class C, Microsoft Corporation, and Amazon.com, Inc. have raised capital spending guidance, which is good news for NVIDIA Corporation. At the same time, demand for AI chips is spreading from large-scale companies to a wider range of industry clients. In addition to NVIDIA Corporation's earnings report, tech companies like Snowflake, HP Inc., Dell Technologies, Inc. Class C, as well as a number of Chinese concept stocks such as PDD Holdings Inc. Sponsored ADR Class A, Trip.com Group Ltd. Sponsored ADR, and Alibaba Group Holding Limited Sponsored ADR, will also release their latest financial results. Investors will receive the next set of data on the outlook of the US economy in the coming week, with the release of the inflation indicator favored by the Federal Reserve - the Personal Consumption Expenditures Price Index (PCE). Economists forecast that the US core PCE index for July will remain unchanged at 0.3% month-on-month, with a slight rebound to 2.9% year-on-year. The upcoming PCE inflation data is unlikely to derail the Fed's rate cut in September, but high inflation could dampen hopes of rate cuts after September. Important events next week: Monday (August 25): Germany's IFO Business Climate Index for August, US July New Home Sales Annualized, London Stock Exchange closed for one day, announcements from Zhijie and Wenjie on new autumn products. Tuesday (August 26): US Durable Goods Orders for July, US FHFA House Price Index for June, US Conference Board Consumer Confidence Index for August, US Richmond Fed Manufacturing Index for August, speeches by Dallas Fed President Kaplan and New York Fed President Williams, release of minutes from the Reserve Bank of Australia's August monetary policy meeting. Wednesday (August 27): API Crude Oil Stocks for the week ending August 22, Germany's GfK Consumer Confidence Index for September, Switzerland's ZEW Investor Confidence Index for August, EIA Crude Oil Stocks for the week ending August 22, EIA Cushing Crude Oil Stocks for the week ending August 22. Thursday (August 28): Eurozone Industrial Confidence Index for August, Eurozone Economic Confidence Index for August, US Initial Jobless Claims for the week ending August 23, revised annualized real GDP for the second quarter, US Pending Home Sales Index for July, EIA Natural Gas Stocks for the week ending August 22, interest rate decision from the Bank of Korea until August 28, release of minutes from the ECB's July monetary policy meeting. Friday (August 29): Japan's Unemployment Rate for July, France's CPI for August, France's GDP for the second quarter, Switzerland's KOF Economic Leading Indicator for August, Germany's seasonally adjusted Unemployment Rate for August, Canada's GDP for June, US Core PCE Price Index for July, US Personal Income for July, US Core PCE Price Index for July, US Final University of Michigan Consumer Confidence Index for August, US Final One-Year Inflation Rate Expectations for August, Federal Reserve Governor Waller's speech on monetary policy. This article is reprinted from "Finance Association". Editor: Xu Wenqiang.