Wall Street Week: Nvidia Earnings and Alphabet's Ascent

Wall Street's major indexes showed mixed results ahead of Nvidia's earnings report and a spate of government data releases. Alphabet stock surged following Berkshire Hathaway's new stake, while investor concerns about AI stock valuations were highlighted by a dip in Nvidia's shares. Economic indicators and Fed policy awaited.

On Monday, Wall Street's key indexes exhibited mixed sentiments with various sectors bracing for Nvidia's upcoming earnings report and the return of governmental data releases. Alphabet shares soared by 4.6%, hitting a new peak after Berkshire Hathaway disclosed a $4.3 billion investment in the tech giant.

As Nvidia prepares to announce its results on Wednesday, some investors are cautious, worried about inflated valuations in the AI sector. Nvidia's shares fell 1.3% in anticipation. Sector expert Jeff Favuzza suggests a potential 6% market swing for Nvidia post-earnings, revealing investor jitters over AI-related stocks this year.

Economic insights will be sought from Thursday's September jobs report, following the end of the U.S. government shutdown. Meanwhile, the Federal Reserve's approach to interest rates remains watchful, with a significant chance the rates hold steady in December. Morgan Stanley anticipates U.S. stocks outperforming next year with a preference for equities over bonds.

(With inputs from agencies.)