TLDR
- Nvidia reports Wednesday with markets watching closely after the stock sold off following its last three quarterly reports
- Bitcoin climbed back above $70,000 for the first time since late May, driven by crypto legislation hopes and Treasury bond buybacks
- The PCE inflation index lands Wednesday, a key reading that could influence the Fed’s September rate decision
- The Treasury’s bond buyback program is creating tension with the Fed, which has favored higher yields to tighten policy
- A packed earnings week includes CrowdStrike, Salesforce, Dollar General, Ulta Beauty, and Marvell Technology
Nvidia is set to report its second-quarter results on Wednesday, and investors are watching closely. The stock dropped after each of its last three quarterly earnings releases.
#earnings for the week of August 24, 2026https://t.co/hLn2sKQhEY$NVDA $MRVL $CRM $IREN $CRWD $XPEV $KSS $INTU $OKTA $ADSK $SNPS $DKS $AFRM $ULTA $WDAY $S $ANF $DY $ESTC $CM $BBY $RBRK $GRRR $BILI $A $PDD $WSM $SMTC $VEEV $ZM $TTD $PICS $LI $RY $SJM $DG $NCNO $BNS $BOX $GAP… pic.twitter.com/DWNlsi5unr
— Earnings Whispers (@eWhispers) August 21, 2026
Last quarter, Nvidia beat expectations. Revenue rose 85% year-over-year, with data center sales nearly doubling. CEO Jensen Huang said demand “has gone parabolic.”
The company has had a busy summer. Huang announced a new chip designed for on-device AI agents. Nvidia also made progress on chip sales in China and struck deals tied to AI data center financing.
The stakes are high. According to Wedbush, for every $1 Nvidia earns, another $8 to $10 gets spent across the broader tech sector.
HSBC analyst Frank Lee suggested in a Friday note that Nvidia’s next move could involve positioning itself as the world’s biggest contributor to open-source AI, which would expand its customer base to millions of developers and sovereign nations.
Bitcoin Climbs Back Above $70,000
Bitcoin crossed back above $70,000 last week, its first time there since late May. The move came after months of flat trading.
Several factors pushed prices higher. President Trump renewed efforts to pass crypto legislation. The Treasury also announced it would increase purchases of longer-term government debt, a move that sent crypto prices up.
The US national debt passing $40 trillion also came into focus, which historically has benefited Bitcoin as investors look for alternatives.
Bernstein strategist Gautam Chhugani said Bitcoin has historically reacted positively to liquidity expansion. Whether the current momentum holds remains an open question.
Fed and Treasury Pull in Different Directions
The Treasury’s bond buyback program surprised markets last week and is creating friction with the Federal Reserve. Fed Chair Kevin Warsh has signaled support for higher yields as a way to tighten policy without raising rates. The Treasury’s buybacks work in the opposite direction, pushing yields lower.
“We have the Fed and the Treasury basically working in sort of opposite directions,” said Wil Stith, senior bond portfolio manager at Wilmington Trust.
The 30-year Treasury yield hit levels not seen since 2007 before the buyback announcement briefly pulled it back.
BRBREAKING: 🇺🇸 The US 30 year yield has fully erased Treasury buyback announcement crash and is back at 5.282%.
The Treasury announced it would double its bond buybacks and the yield crashed to 5.18% within an hour. That entire drop has now been reversed in less than 48 hours.… pic.twitter.com/Ppv7FAuqSn
— Bull Theory (@BullTheoryio) August 21, 2026
The PCE price index, the Fed’s preferred inflation measure, lands Wednesday. It rose 3.7% year-over-year in June. A higher-than-expected reading could increase pressure for a September rate hike.
Fed Chair Warsh is expected to speak at the Jackson Hole Symposium on Friday, where he may offer more clarity on the Fed’s direction.
Retailers including Dollar General, Dollar Tree, Gap, Ulta Beauty, and Marvell Technology also report this week, giving further insight into consumer spending and AI chip demand.
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