The S&P has fallen for 6 out of the past 7 days, and the market needs "NVIDIA to be exceptionally strong" to save tech stocks

The S&P 500 index continued to weaken on Monday, with declines in 6 out of the past 7 trading days. The market euphoria brought about by last week's Federal Reserve interest rate cut expectations has faded, and investors are refocusing on the earnings outlook for U.S. companies. The market is now pinning its hopes on NVIDIA's earnings report, expecting the AI chip giant to deliver sufficiently strong results to restore confidence in the tech sector.On Monday, the S&P 500 index fell by 0.4%, after rising 1.5% to near historical highs last Friday. The Nasdaq 100 index dropped by 0.3%. Despite the pressure on the broader market, the rise of several large tech stocks helped offset wider market losses, with NVIDIA gaining 1% ahead of its earnings report.The market is currently hoping that NVIDIA can alleviate concerns about AI spending. Adam Crisafulli, founder of Vital Knowledge, stated:"NVIDIA needs to deliver exceptionally strong performance to stimulate a significant influx of funds back into the tech sector."Tech Stocks as a Key Variable in the MarketAfter Federal Reserve Chairman Jerome Powell hinted at possible interest rate cuts in a speech last Friday in Jackson Hole, Wyoming, traders felt optimistic about the outlook for this week. However, the stock market will face a critical test: whether the AI boom that has driven the market up in recent years can continue.Adam Crisafulli pointed out, "Tech stocks are a huge variable. Although the market rose across the board on Friday after Powell's speech, the recent rotation of funds from tech stocks to cyclical and value stocks is still fresh in memory."As a key supplier of AI chips, NVIDIA's significant weight in the index gives it a substantial influence on the broader market, making it an important barometer for the overall market.Traders hope that NVIDIA can ease market concerns about AI spending and effectively confirm that the latest round of stock market gains is not merely a technical bubble.According to a Jianwen article, KeyBanc analysts indicate that the market generally expects NVIDIA's third-quarter revenue to be $45.92 billion, with earnings per share of $1.01. If the Chinese business based on chips like H20 and RTX6000D (B40) is included, it could bring NVIDIA an incremental revenue of $2 billion to $3 billion.KeyBanc emphasized in its report that NVIDIA's GPU supply and capacity are significantly improving, which is the core driver of its sustained performance. Additionally, the production efficiency of server racks is also improving.The report noted that the manufacturing yield of the GB200 racks by server ODM manufacturers has approached 85%, and the shipment volume of racks is expected to reach 15,000 to 17,000 by the end of the year. Therefore, the firm raised its forecast for the annual shipment of GB200 racks from 25,000 to 30,000In addition to NVIDIA, Dell Technologies and Marvell Technology will also announce their earnings later this week