Global highlights for next week: NVIDIA Corporation (NVDA.US) will release its highly anticipated financial report and the Federal Reserve's preferred inflation indicators will be announced.

After Federal Reserve Chairman Powell opened the door to rate cuts at the earliest September meeting, risk assets rebounded significantly on Friday. The Dow Jones Industrial Average set its first closing record of the year, and the S&P 500 Index ended a five-day losing streak. Investors had originally expected the central bank chief to take a cautious stance, but Powell's comments instead emphasized the fragility of the labor market and hinted that the Fed might change its wait-and-see approach. Looking ahead to next week, the performance of artificial intelligence (AI) chip manufacturing giant NVIDIA Corporation (NVDA.US) has been pushed into the spotlight - this earnings report not only affects its stock price, but is also seen as a "touchstone" for the entire AI trading logic. If it falls short of expectations, the technology sector may restart a sell-off trend. According to LSEG data, NVIDIA Corporation is expected to achieve revenue of $45.9 billion in the second quarter, with earnings per share increasing by 48% year-on-year. With its absolute advantage in AI chips, NVIDIA Corporation's stock price has been soaring in recent years, supporting not only the technology sector but also the entire market. Last month, NVIDIA Corporation became the first company in the world to surpass a market value of $400 billion. Matthew Maley, Chief Market Strategist at Miller Tabak, stated, "When the entire technology sector is in turmoil, the earnings of the AI leader will be scrutinized, and the impact will be much greater than usual." Maley warned that considering the weight of the technology sector in the market, if tech stocks continue to decline, it will be difficult for the US stock market to maintain its upward trend. Matt Orton, a strategist at Raymond James, pointed out that NVIDIA Corporation has almost become synonymous with the AI market, and its performance will quickly affect the entire AI industry chain, which has been a major driving force behind the rise of the S&P 500 index this year. Analysts say that the recent weakness in technology stocks is due to cautious sentiment about the future of the AI industry. For example, the CEO of OpenAI, Sam Altman, warned that investors may be too excited about AI, and there is a clear bubble in the market; in addition, a study by researchers at MIT has also raised questions about the return on investment in AI. However, cloud giants such as Alphabet Inc. Class C, Microsoft Corporation, Amazon.com, Inc., have raised capital spending guidance, which benefits NVIDIA Corporation. At the same time, the demand for AI chips is spreading from large-scale companies to a wider range of industry customers. In addition to NVIDIA Corporation's earnings, 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, Alibaba Group Holding Limited Sponsored ADR, will also release their latest earnings. Investors will receive the next set of data about the outlook for the US economy in the coming week, including the release of the preferred inflation indicator of the Federal Reserve - the Personal Consumption Expenditures Price Index (PCE). Economists expect the core PCE index for July to 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 disrupt the Fed's rate cut in September, but high inflation could dampen hopes for rate cuts after September.