The S&P 500 gained 0.7% on Monday, fueled by a tech rally led by Nvidia. This uptick occurred even with new trade tariffs announced by President Donald Trump. Market watchers now focus on upcoming economic data releases and Fed Chair Jerome Powell’s testimony later in the week.

Market Performance Snapshot

S&P 500: +0.7%
NASDAQ Composite: +1%
Dow Jones Industrial Average: +166 points (+0.4%)

Key Market Drivers

Tech Surge: Nvidia Leads the Charge

Nvidia shares surged by 3% following an upgrade from Evercore ISI, which believes now is a buying opportunity. While concerns regarding competition from AI startup DeepSeek weighed on Nvidia, analysts regard this competition as manageable. Nvidia is set to release its quarterly earnings report on February 26, heightening anticipation surrounding its stock performance.

Powell’s Testimony & CPI Data on the Horizon

Fed Chair Jerome Powell will present his semiannual monetary policy testimony to Congress this Tuesday and Wednesday. Analysts are closely monitoring his comments on inflation, interest rates, and tariffs, especially since the January CPI report will follow shortly after.

Trump’s Tariff Moves Raise Trade Concerns

The administration announced new 25% tariffs on steel and aluminum imports, just days after implementing 10% tariffs on China. The market continues to weigh potential impacts on inflation and corporate earnings due to this heightened trade climate.

Market Outlook & What to Watch Next

Nvidia’s upcoming earnings will likely influence momentum within tech stocks. Meanwhile, Powell’s upcoming statements will shape expectations for 2024 Fed rate adjustments. Lastly, the CPI report will be pivotal in determining inflation patterns—any higher-than-expected figures could delay necessary rate cuts.

Final Thoughts

Even with trade tensions persisting, bullish tech earnings and optimism around AI are propelling the market upwards. However, looming tariff concerns and inflation risks make it essential for investors to stay tuned to Powell’s testimony and CPI data. Will stocks continue to gain or face a downturn in the near future?