BBVA strategists expect S&P 500 to rally on publication of Nvidia's positive earnings report

After last week's decline in the S&P 500 index due to investor concerns about Donald Trump's bill promoting fiscal policy changes in the United States, markets are focusing on Nvidia's report. One of the leading companies in the technology sector is due to release its earnings for Q1 2025 on Wednesday. If the data is positive, BBVA strategists predict another rise in American stocks.

According to Bloomberg, investors are now holding about $7 trillion parked in cash funds. Nvidia's positive report may further boost demand for the company's shares. That said, they have already risen by about 40% in the past seven weeks. This is not the limit for the tech giant, BBVA strategists believe. Nvidia's current share price is 14% below the record set in January.

However, during the previous rise of the S&P 500 index after the trade truce between the United States and China, it approached the overbought zone. This creates a difficult background for further forecasts, BBVA notes.