Nvidia Faces Market Test as Investors Await Earnings Amid Cautious Trading

This article first appeared on GuruFocus.

Nvidia (NVDA, Financials) enters the week in the spotlight as investors look for clues on whether the chipmaker can keep powering a rally that has defined the broader tech market this year. Trading was cautious across Asia on Monday, with markets pausing ahead of a full slate of U.S. data and company updates.

Warning! GuruFocus has detected 6 Warning Signs with NVDA.

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Stocks were mostly flat as shifting interest-rate expectations added uncertainty. Odds of a Federal Reserve rate cut next month have pulled back to around 40%, a noticeable drop from just a week ago. That shift kept traders from making big moves early in the week.

Japan's Nikkei hovered near unchanged levels, but travel and retail names fell sharply after China warned citizens about visiting Japan. The news added to pressure following data showing Japan's economy contracted for the first time in six quarters, largely due to U.S. tariffs.

Investors are also waiting for Thursday's delayed U.S. jobs report, though many expect it to offer few surprises given recent signs of a cooling labor market. With several Federal Reserve officials set to speak this week, traders are listening closely for any hints on where policy may head next.

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