Two major forces shaping the U.S. stock market will face scrutiny next week as semiconductor leader Nvidia and major retailers including Walmart release quarterly earnings reports, offering fresh insights into artificial intelligence growth and consumer spending under inflationary pressure.
Stock markets extended their upward momentum this week, with the benchmark S&P 500 and tech-focused Nasdaq Composite reaching new record highs. According to Allen Bond, portfolio manager at Jensen Investment Management, market movements have been influenced by developments in AI and rising energy costs from the conflict in Iran, operating on “almost parallel tracks.”
“There is not a lot of overlap in the two narratives, but one day to the next, the developments … can really drive the market,” Bond said.
The S&P 500 has surged approximately 18% from its late March yearly low and now shows gains exceeding 9% for 2026.
Following the significant rally, multiple investors indicated the market appeared ready for a pause. Some expressed concern that a relatively small number of stocks have powered recent advances, indicating the upward trend may be less solid than it appears. LSEG data shows only about 20% of S&P 500 companies have beaten the index’s performance since the March 30 low through Thursday morning.
“There are really a smaller set of names driving the overall index returns again,” said Patrick Ryan, chief investment strategist at Madison Investments. “It’s not necessarily a healthy market when you have that many stocks being left behind.”
Nvidia will announce results on Wednesday as an exceptionally robust first quarter for U.S. corporate earnings concludes.
Shares of Nvidia, the world’s largest company by market value, along with other chip manufacturers have pushed indexes higher in recent weeks. Nvidia stock has climbed more than 40% since the March bottom, while the Philadelphia SE semiconductor index has jumped about 70%, driven by intense demand for processors as technology companies invest heavily in data centers and AI-related infrastructure.
Nvidia’s artificial intelligence products have propelled its stock price up over 1,900% since the current bull market started in October 2022.
“What we need to see from Nvidia is evidence that justifies the increase in the stock price and justifies their position and their benefit from this increased spending in data centers,” Bond said. “The results will be looked at … as a signal into the health of the rest of the industry.”
One key question involves whether competitors are cutting into Nvidia’s market dominance, noted Yung-Yu Ma, chief investment strategist at PNC Financial Services Group.
“It’s probably going to be more a story of, is Nvidia able to defend its leadership position as well as it has been able to the past few years?” Ma said.
Next week also provides an update on the retail sector. Walmart, the world’s biggest retailer, releases quarterly figures on Thursday. Additional retailers reporting include Home Depot, Target and TJX Cos.
Investors have grown concerned that conflict-related inflation will begin impacting consumer spending, which represents more than two-thirds of the U.S. economy.
This week’s data revealed elevated monthly figures for both consumer and wholesale prices, with the Producer Price Index for April recording its steepest increase since March 2022. Earlier this month, the U.S. national average gasoline price exceeded $4.50 per gallon for the first time in nearly four years.
Investors will seek retailer perspectives on spending patterns and whether they have shifted in recent weeks, PNC’s Ma explained.
“At some point, these costs are going to catch up with consumers and are going to start to moderate spending,” Ma said. “That is probably what is more at stake for the retail earnings is, how resilient is the consumer?”
