A number of companies, led by NVIDIA, which announced quarterly results over the past 3 weeks, posted strong results. NVIDIA indicated that revenue would increase by approximately 70% next fiscal year, while results from other companies also exceeded market expectations and developments related to AI attracted attention.
Among the US companies that announced results in recent weeks, NVIDIA indicated that revenue would increase by approximately 70% year on year next fiscal year. CrowdStrike, Salesforce, Deere and Nordson also announced results, with many of these stocks reporting revenue and EPS above market expectations. NVIDIA's revenue for May–July is expected to have increased significantly year on year, while guidance for August–October is also expected to be at a high level.
While AI-related stocks have remained firm on expectations for sustained AI investment, some stocks have also seen profit-taking after announcing results, and varied developments among technology-related stocks are influencing the market. In the industry-by-industry performance shown in Figure 2, information technology and financials were relatively firm, while energy continued to show large swings, influenced by movements in crude oil prices. Attention will focus on whether both semiconductor and software stocks can continue to perform well.
A key focus this week will be the market's reassessment of the probability of a US rate hike in September, based on forward guidance following the speech by Fed Chair Warsh at Jackson Hole. The release of the September employment report, trends in the ISM manufacturing and non-manufacturing indexes, and the outcome of the G20 meeting of finance ministers and central bank governors will also be among the market's areas of focus. Because US markets respond sensitively to employment and price trends, this week, when the movements of stocks reporting results coincide with the release of macroeconomic indicators, is expected to bring a mix of potential sources of volatility and positive factors.