The heavyweight tech sector slumped 1.6 on the week after a huge run for the group, dragging on key indexes. The sectors weekly decline moderated on Friday as stocks broadly rallied after comments from US Federal Reserve chairman Jerome Powell appeared to pave the way for imminent interest rate cuts.
Fuelled by its dominant artificial intelligence products, Nvidias massive share price gains have buoyed both the tech sector and the overall market in recent years. Last month, Nvidia became the first company to top US4-trillion in market value.
Investors are now more on edge heading into Nvidias results, said Matthew Maley, chief market strategist at Miller Tabak. When the group goes down and the most important stock in the group reports earnings, that is going to have a bigger impact than usual, Maley said.