FOMC Minutes and Nvidia's $78 Billion Outlook Set Market Tone Under New Fed Chair
Updated
Updated · heygotrade.com · May 18
FOMC Minutes and Nvidia's $78 Billion Outlook Set Market Tone Under New Fed Chair
4 articles · Updated · heygotrade.com · May 18
Wednesday's twin catalysts — minutes from Jerome Powell's final FOMC meeting and Nvidia's fiscal Q1 2027 report — are expected to drive the next leg for U.S. stocks after six straight weekly S&P 500 gains.
Kevin Warsh, who took over as Fed chair on May 15, puts extra weight on the minutes as traders look for how hawkish officials were after April CPI rose 0.6% month over month.
Nvidia's report carries unusually high stakes because Wall Street expects $78 billion in revenue and $1.77 EPS, with gross margin and hyperscaler AI spending commentary likely to shape the broader tech trade.
Retail earnings from Walmart, Home Depot, Target and others will test whether consumers and home-improvement demand are still weakening under persistent inflation pressure.
Markets have already swung from expecting cuts to pricing a 20% chance of an October hike and 30% in December, leaving record-high equities vulnerable if this week's data or earnings disappoint.
New Fed Chair Warsh opposed QE. Will he now risk a market crash to fight inflation fueled by AI and government spending?
As hyperscalers pour billions into AI, could an impending energy crisis be the one thing that derails the entire tech boom?
Nvidia’s $1 Trillion AI Ambition, Persistent Inflation, and the Warsh Fed: The 2026 Market Outlook
Overview
Nvidia continues to dominate the AI market, with its revenue soaring to $215.9 billion in fiscal year 2026—a 65% jump from the previous year. The company’s Q4 FY26 revenue alone hit $68.1 billion, up 20% from the prior quarter and 73% year-over-year. Building on this momentum, Nvidia has set a bold goal for its AI data center revenue to reach $1 trillion by 2027, supported by $1 trillion in outstanding AI orders. This strong performance and ambitious outlook have led market analysts to rate Nvidia stock as a 'Strong Buy,' reflecting high investor confidence in its future growth.