Two things are clear as stocks enter the most consequential week of summer: this market no longer trades on AI alone, and bond volatility has proved that catalysts are definitely not confined to the upside.
That’s the setup for a pivotal end to August. On Wednesday, Nvidia Corp. reports in the closest thing the AI trade has to a quarterly referendum. And then Friday sees Kevin Warsh deliver his first Jackson Hole keynote as Federal Reserve chair, with debate swirling around the US Treasury’s campaign against a selloff in long-term bonds. The advertised topic of Warsh’s remarks, on payments innovation, doesn’t sound obviously market moving. But side notes are possible and so is the risk of over-interpreting a comment.