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Nvidia Earnings Eyed as Stocks Brace for Historically Tough September
25 Aug
Summary
- S&P 500 has averaged 4.2% decline in September over last 5 years
- Nvidia earnings report could stabilize AI trade and boost major averages
- Traders remain bullish despite September's poor performance
As of August 25th, 2025, Wall Street is bracing for a potentially challenging September, a month that has historically been tough for stocks. Over the last 5 years, the S&P 500 has averaged a 4.2% decline during the month, falling in 4 out of the last 5 Septembers.
However, investors are heading into the new month with a glimmer of hope. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all hit record highs in August, partly due to expectations that the Federal Reserve will ease monetary policy in September. Additionally, the upcoming Nvidia earnings report, scheduled for after the bell on Wednesday, could provide a much-needed tailwind for the market.
Analysts expect Nvidia to report sharp year-over-year profit and revenue growth, which could help stabilize the recently faltering AI trade and propel the major averages to new highs as September begins. Traders at JPMorgan remain tactically bullish, stating that "Nvidia could be the accelerant to animal spirits this week" and that the "set-up is just perfect."
While the market may follow the September trend of recent years if the Federal Reserve does not deliver a rate cut as expected, the potential for Nvidia's strong earnings to boost investor sentiment is a key factor to watch in the coming weeks.
