Forget the Fed: Thanks to Nvidia, Aug. 28 Might be an Even Bigger Day for the Stock Market
The U.S. Federal Reserve has held interest rates steady since August 2023, when it last raised the federal funds rate to a 23-year high of 5.33%. But with inflation cooling and the unemployment rate ticking up, many Wall Street pundits predict the Fed will cut interest rates at its next meeting on Sept. 17 and 18.
Falling interest rates are typically good for the stock market -- and I'll explain why in a moment -- but since a September rate cut is now widely expected, it's unlikely to have a substantial impact on the market. Instead, I think investors should be focused on Aug. 28, which is the date Nvidia (NASDAQ: NVDA) will report its earnings for the fiscal 2025 second quarter (ended July 31).
Nvidia stock has soared 187% over the past year alone on the back of the company's blockbuster financial results, so here's why its upcoming report could have a much bigger effect on investor sentiment than the Fed meeting.
Source Fool.com
