US500 nears all-time high ahead of Jackson Hall and Nvidia report

• Fed Chair Powell's comments on interest rate policy are highly anticipated
   
• Nvidia's Q2 2024 earnings report expected to show strong growth
   
• S&P500 trades near record high, fueling market anticipation
   
• Lower interest rates may boost economic growth and stock prices

US500 bulls are trying to rally ahead of the Jackson Hall Symposium (Aug 22-24) and Nvidia earnings report (Aug 28, after-market).

Yesterday, Aug 20th, the US benchmark index broke down and closed in the red after its longest winning streak of the year.

Investors are now looking forward to Fed Chair Jerome Powell's comments (Friday, Aug 23) on the future of interest rate policy along with the most anticipated earnings release of the season - Nvidia.

Jackson Hall Symposium - an annual gathering of the world's central bankers, policymakers and academics to discuss key issues of the day.

The market is now pricing in weaker-than-expected labor market data for July:

• 69.5% probability of a 25bp rate cut
   
• 30.5% probability of a 50bp rate cut

          Source: CME FedWatch Tool

A strong signal of imminent policy easing could please the markets, potentially leading to further gains in the indices.

Notably, the S&P500 is currently trading within 1.29% of its record high, adding to the anticipation.

When interest rates are lowered, the broader markets may react positively as lower borrowing costs can stimulate economic growth, increase consumer spending and boost stock prices, although the actual impact may vary depending on the specific economic conditions and market sentiment at the time.

Nvidia earnings report

The world's largest chipmaker is preparing to announce its Q2 2024 financial results. Markets expect it to report:

• 86% YoY revenue growth (25.14B - expected; 13.51B - Q2 2023)
   
• 130% YoY EPS growth (0.57 - expected; 0.25 - Q2 2023)

As one of the largest companies in the world, with a market capitalization of $1.13 trillion and a significant weighting of 6.78% in the S&P500 Index, any movement in its stock price could potentially lead to increased market volatility.