Wall Street Rebounds as Investors Watch Nvidia and Fed Signals

Wall Street recovered on Friday after a sharp sell-off, but the rebound did not erase concerns about Treasury yields, geopolitical uncertainty and stretched technology valuations. The Dow Jones Industrial Average rose 0.98%, while the S&P 500 and Nasdaq Composite each gained about 0.43%. However, all three major indexes still ended the week lower, breaking the S&P 500 and Nasdaq’s three-week winning streaks. The week’s volatility was driven partly by rising government-bond yields. Higher long-term yields increase the discount rate applied to future corporate earnings, creating particular pressure on technology and AI stocks. They can also make bonds more attractive relative to equities, encouraging investors to reduce exposure to expensive growth shares. Friday’s gains therefore appeared more like a stabilisation attempt than a clear return of confidence. Investors were willing to buy after the previous session’s losses, but uncertainty over oil, the Middle East and the bond market limited enthusiasm. Thin late-summer trading conditions may also have exaggerated daily price swings. The next major test is Nvidia’s earnings report. Because Nvidia sits at the centre of the AI investment cycle, its results and forward guidance could influence semiconductor stocks, cloud providers and the broader technology sector. Markets will be watching whether demand for AI infrastructure remains strong enough to justify high valuations and large capital-spending plans. The Federal Reserve outlook is equally important. Investors are waiting for signals from the Jackson Hole symposium, where Federal Reserve Chair Kevin Warsh is scheduled to deliver his first major policy speech. His comments could affect expectations for interest rates, Treasury yields, the dollar and equity valuations. For traders, the interaction between these catalysts matters more than any single headline. Strong Nvidia guidance combined with stable yields could revive the risk-on move. A disappointing outlook or hawkish Fed message could push yields higher and renew selling in technology shares.