The S&P 500 Index and its ETFs, like SPY, IVV, and VOO, remained in a tight range near their all-time highs last week as investors reacted to the falling odds of interest rate cuts in the coming meeting and the end of the government shutdown. This article explores some of the top catalysts for the S&P 500 Index and its ETFs this week.

S&P 500 Index and SPY, VOO, and IVV ETFs to react to Nvidia earnings 

The most important catalyst for the S&P 500 Index and its ETFs like SPY, VOO, and IVV will come out on Wednesday when Nvidia publishes its third-quarter earnings.

These will be important numbers because the company has become the poster child of the ongoing AI boom.

A strong earnings report will likely validate the AI theme and push the stock market much higher in the long term. Analysts believe that the company’s growth accelerated in the last quarter, with its revenue rising by 56% to over $54.9 billion.

The earnings per share (EPS) is expected to come in at $1.25, up sharply from the 81 cents it made in the same period last year.

Its annual revenue guidance is expected to come in at $207 billion, up by 60% from last year. Also, its annual earnings per share is expected to come in at $4.55, up from the $2.9 it made last year.

READ MORE: Experts think Nvidia stock could jump 30% this week, here’s why

Other top earnings to watch 

The S&P 500 Index and its ETFs will also react to other corporations’ earnings, which will come out this week.

Top retailers like The Home Depot, Urban Outfitters, TJX, Lowe’s, Target, Williams-Sonoma, Walmart, Ross Stores, and The Gap will publish their earnings results this week. These numbers will provide more information on the health of the American consumer.

Other companies like Intuit, Veeva Systems, Jacobs Solutions, Medtronic, Dolby Laboratories. 

Similarly, some notable Chinese companies like PDD Holdings, Baidu, XPeng, and Trip.com will publish their results this week.

These numbers come at a time when American companies are reporting strong numbers. Data compiled by FactSet shows that the average earnings of the 92% of S&P 500 Index that have reported is about 13.1%, the fourth consecutive year of double-digit growth. In a recent note, an analyst said:

“This was a really strong earnings season, all about profit expansion. There are going to be selloffs, but margins are around all-time highs so this could be another buy-the-dip opportunity.”

Federal Reserve minutes 

The other main catalyst for the S&P 500 Index this week will be the upcoming Federal Reserve minutes on Wednesday.

These minutes will provide more information about the last Federal Reserve meeting in which officials decided to cut interest rates by 0.25%, bringing the benchmark rate to between 3.75% and 4.0%

The minutes come at a time when the odds that the Federal Reserve will cut interest rates by 0.25% have dropped from 90% earlier this month to the current 50%.

These odds have slipped as some Fed officials have warned that cutting interest rates will push inflation higher for longer. They have noted that the inflation has remained above the target of 2% in the last four and a half years 

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