US stocks reverse losses when inflation data and key earnings report are looming 

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US stocks erased last week’s loss Monday, as investors looked forward to the fourth quarter earnings report and an important inflation reading this week. 

Nvidia will report their Q4 results on Wednesday afternoon. It’s reasonable that investors would be searching for any signs of a turnaround after trading in a sideways pattern for months. Nvidia’s days as a chipmaker with little competition have long passed. 

The market will react to the report in either direction. 

PCE’s January report is due out on Friday. It has become even more crucial now that the other measures of inflation have been hot. PPI and CPI are on our radar. 

We find it hard to believe that the Fed will change its mind if the Fed’s reading is not hot enough. We think this  pause will last a bit longer. 

The majority of stocks have remained resilient in the face of widespread uncertainty. The latest data has begun to show cracks in investors’ beliefs about the upcoming tariff policy. “economic growth is still strong” Theory that complicates Fed’s stance. 

The facade did start to crack late last week when the S&P 500 posted its worst daily decline of 2025 on Friday. The growth is attributed by analysts to the disappointing US data and the overseas. According to the Philly Fed Manufacturing Index released Thursday, expansion dropped from 44.3 this January to 18.1. Eurozone flash PMI came in lower than expected. 

Even so, VIX stands at an impressive 17.8, which suggests that the volatility level is not very high. This week we’ll find out what happened.

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leadzevs/ author of the article

LeadZevs (John Lesley) is an experienced trader specializing in technical analysis and forecasting of the cryptocurrency market. He has over 10 years of experience with a wide range of markets and assets - currencies, indices and commodities.John is the author of popular topics on major forums with millions of views and works as both an analyst and a professional trader for both clients and himself.