(PRO Views is exclusive to PRO subscribers and gives you insight into the day’s news straight from real investing pros. See the full discussion above.) The much-anticipated quarterly results of Nvidia and two major software stocks will test key levels of the market this week, says Jay Woods. Woods, chief market strategist at Freedom Capital Markets, expects Nvidia stock to steadily rise on the back of the company’s fiscal fourth-quarter results, which will be released after the market closes on Wednesday. Woods said this was due to recent post-earnings volatility in the tech industry, noting that both Meta and Palantir’s stock prices have fallen despite their companies’ strong performance. Even more important to consider is the impact of Nvidia’s report on the S&P 500, given Nvidia’s 7% stake in the broader market, Woods said. He said the S&P 500 index has repeatedly tested the 7,000 level, with all eyes on the index’s 100-day moving average of 6,822. “Watch how[NVIDIA]closes on Thursday. … We want to see Nvidia open strong. Stay strong. If not, if we pull back, look at the 200-day moving average, this $173 area for Nvidia,” Woods said. “If we break that, it’s going to dictate this whole market. We could have a big flashout to $6,600 on the S&P 500, and Nvidia could go back to $150 in the coming months. So it’s very important to watch Nvidia’s price movement.” Nvidia stock is up 2% year-to-date. The stock has outperformed its Magnificent Seven peers in what has been a weak year for the group so far. NVDA 1Y Mountain Nvidia stock performance over the past year. Salesforce and Snowflake earnings are also scheduled to be released on Wednesday, another important event for the market this week. Investors will look to company guidance to gauge how disruptive AI is to the software industry, Woods said. “These stocks need a rescue bounce and we need to look at their recent lows. They need to hold. If these stocks can rebound, the question is is this an easing or has something changed? Either way, we need these stocks to come back because the software is under pressure.” Salesforce and Snowflake stock prices have fallen about 34% and 29%, respectively, this year. Other headlines that could move markets could come from President Donald Trump’s State of the Union address on Tuesday. The annual speech followed his threat to impose 15% tariffs on the world and last week’s Supreme Court ruling on trade tariffs. The conflict between the US and Iran is also in focus, with a third round of talks between the two countries scheduled to continue on Thursday in Geneva. “We’re going to see not only the conflict with Iran, but also the tariffs,” Woods said. “Energy stocks are soaring. Let’s see what happens in this conflict. Even if we go to war, the energy sector will continue to have strong tailwinds.” (This weekly video is exclusive to CNBC PRO subscribers.)
