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Markets found a reason to smile Tuesday. The S&P 500 (SPY) popped 1.43% and the Nasdaq 100 (NASDAQ:QQQ) gained 1.9% at 10.18am after President Trump unexpectedly delayed the EU tariff deadline to July 9. His phone call with European Commission President Ursula von der Leyen was described as very nice, and that was apparently enough to cool fearsat least for now. Investors have been starved for a break in trade drama, and this reprieve gave them one. Falling global bond yields, partly driven by Japan signaling a tweak to debt issuance, added a tailwind.
Kevin Gordon at Charles Schwab pointed to two drivers: tariff de-escalation and easing Treasury yields after last week's spike. But let's be honestthis rally could be running on borrowed time. The next few days are stacked: consumer confidence, jobless claims, housing data, and FOMC minutes. But none of it may matter as much as what happens after the bell on Wednesday. That's when Nvidia (NASDAQ:NVDA), the last of the mega-cap tech titans to report, takes center stage.
Nvidia shares are up 2.95% at 10.19am heading into earnings, but still trailing names like Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT) year-to-date. The stock's been stuck in a tight range for 10 months, said Brave Eagle Wealth CIO Robert Ruggirello. It needs a sparksomething strong enough to justify the valuation and break it out. A blowout print could do the trick. Anything short, and the bulls might lose their grip. Elsewhere, AMD (NASDAQ:AMD) got a bump after HSBC upgraded the stock, citing a Saudi partnership and softer trade tensions. But it wasn't all green: PDD missed earnings and dropped hard, and Rocket Pharma imploded after a patient death in a clinical trial. For now, the market's got momentum. But Nvidia's report could decide if it sticksor snaps.
This article first appeared on GuruFocus.