The upcoming week is poised to test the U.S. market rally as Nvidia’s earnings are set to be released. U.S. inflation data is expected to reinforce anticipations for impending rate cuts, while the Eurozone and Australia will also unveil inflation data that could influence interest rate trajectories. Here’s a look at key developments in the markets for the upcoming week. Nvidia Earnings: Investor sentiment towards artificial intelligence will face scrutiny post Nvidia’s earnings report post trading hours on Wednesday. Market watchers will keenly observe guidance on corporate investments in AI and its potential impact on market sentiment, particularly as the market enters a historically volatile period. Nvidia’s stock has surged around 150% year-to-date, a significant driver of the S&P 500’s 17% gain so far this year. However, concerns about a potential dot-com-esque bubble in the midst of the AI frenzy loom. U.S. Economic Data: A pivotal highlight of the economic calendar will be the release of the Personal Consumption Expenditures (PCE) price index on Friday, which serves as the Federal Reserve’s preferred inflation metric. Remarks by Fed Chair Jerome Powell at the annual Jackson Hole symposium pointed towards a forthcoming policy adjustment, possibly indicating an upcoming rate cut in over four years at the next policy meeting. Eurozone Inflation: The Eurozone inflation data scheduled for Friday will influence the European Central Bank’s decision on interest rates for September. Following a slight unexpected uptick in July, attention will be focused on core inflation and the services sector for persistent price increases. Traders’ expectations have increasingly leaned towards an ECB rate cut in September, with additional cuts likely by year-end. Australia Inflation: Wednesday will see the release of July inflation figures in Australia, potentially showing a retreat towards the Reserve Bank of Australia’s target band of 2-3% after three years. Any signs of easing inflationary pressures could heighten scrutiny on the central bank, which has stood out for its reluctance to follow the global trend of rate cuts. Gold Prices: Gold prices have been on a steady climb, surpassing record highs, with a surge of over 20% this year, nearing $3,000 an ounce. Various geopolitical factors such as tensions in the Middle East, uncertainties surrounding the U.S. Presidential election, and expectations of U.S. interest rate cuts have supported this upward trend. However, investors should exercise caution as corrections are common amidst market fluctuations. -Reuters contributed to the reporting.