Chip Rally Builds Into Nvidia Earnings

The stock market rose Tuesday as chip stocks led the Nasdaq higher into Nvidia earnings, while crude oil slid more than 3 percent on an easing Iran risk premium.

Market Snapshot

Stocks climbed to open the week, with the Nasdaq up around 0.9 percent as chipmakers did the heavy lifting into a make-or-break earnings print.

The dollar sat flat near 99 and the VIX eased toward 15.7, a calm backdrop that says traders are leaning into risk rather than hedging it.

Gold held firm around 4,662 while silver slipped under 68, and WTI was the day’s standout, off more than 3 percent as the war premium came out of crude.

Micron led the tape higher on renewed memory demand, Nvidia firmed ahead of its own results, and Target lagged after a soft read on consumer spending.

^{All figures are indicative opening levels as of this morning, August 25.}

Main Story

Chip stocks led the stock market higher on Tuesday, August 25, as investors positioned into Nvidia’s earnings report on Wednesday, the last major test of the AI trade this season, according to CNBC market data.

• Memory and AI hardware names are leading, with Micron up more than 2 percent and Nvidia adding around 1 percent as money rotates back toward the trade that has carried this market all year.
• The mainstream read is a healthy pre-earnings melt-up, with a calm VIX and a flat dollar giving the rally room to run.
• What the market may be underpricing is how much rides on one print, since a single guidance miss from Nvidia could unwind the AI bid across the entire complex in a session.

Chart of the Day

WTI has rolled over hard, sliding to around 82.35 after failing to hold its push toward 87.65.

The drop tracks an unwind of the Iran and Strait of Hormuz risk premium that had propped crude up through mid-August.

Support now sits near 82.00, with the descending trendline around 86.50 capping any bounce.

Technical Trading

A few levels worth watching across the tape:

• WTI is testing support around 82.00 after losing its uptrend, with resistance now down at 86.50 and its 14-day RSI sliding out of neutral toward oversold.
• Gold is holding above support near 4,600 while it works toward resistance around 4,700, with a 14-day RSI in the mid-60s that is firm but not yet overbought.
• The S&P 500 is pressing resistance near 7,700 with its 50-day average around 7,600 offering the first line of support on any pullback.

Global News

1. Chipmakers led a broad tech rally as investors positioned into Nvidia’s Wednesday report, the last major AI bellwether of the earnings season.
2. Crude fell more than 3 percent as the Iran risk premium unwound, easing one of the summer’s persistent inflation worries.
3. Treasury yields drifted lower, taking pressure off rate-sensitive tech and helping the growth trade reassert itself.
4. Target slipped after a cautious consumer read, keeping a spotlight on the health of household spending into the back half of the year.
5. The dollar held steady near 99 on the index, a quiet tape that let equity and commodity stories drive the session.

Texas News

NRG Energy agreed to supply roughly 295 megawatts of power to new Texas data centers, another sign of how fast electricity demand is climbing across the state’s grid.

That buildout is landing as Chevron and ExxonMobil post strong quarterly results, keeping Texas energy at the center of both the power and the profit story.

Looking Ahead

Tuesday, August 25: Markets trade with chips in the lead and light summer volume likely to amplify any move into the Nvidia print.

Wednesday, August 26: Nvidia reports fiscal second-quarter results after the close, the single biggest test of the AI trade this season.

Friday, August 28: The week closes with month-end positioning in play as traders square books after Nvidia and any fresh oil headlines.

The Y’all Street Podcast

Tarek sits down with investor and board advisor Michael Gentile for a look at where he sees the market’s biggest opportunities hiding. He breaks down why gold could be entering a new era, what rising debt and de-dollarization could mean for the U.S. dollar, and why junior mining companies may be dramatically undervalued even at record gold prices. Michael also shares how he hunts for 20 to 50x returns, what he learned from Warren Buffett, and why emotional intelligence matters more than intelligence when markets turn against you.

Prices from Yahoo Finance, CNBC and Fortune. Technical levels from Investing.com and FXStreet. News from Reuters, Al Jazeera and CNBC.

For informational purposes only. Not investment advice. Prices are indicative opening levels and may differ from your broker.