Nvidia's Q1 Earnings Set to Shape Global Equity Markets

On May 20, 2026, U.S. stocks rose ahead of Nvidia’s first-quarter earnings, due after the close. The S&P 500 gained about 0.9 % and the Nasdaq added roughly 1.3 %; the Dow rose about 0.9 %. Chip makers rallied and oil fell to $99 (WTI) and $105 (Brent). Nvidia has driven the AI rally, delivering a 1,400 % five-year gain and a 21 % rise this year, but analysts warn of margin pressure from memory costs and China exposure.

CNBC

U.S. markets saw the SOX up 2.9 % and the 10-year Treasury yield at 4.588 %; the market priced a 37 % chance of a 25-basis-point Fed hike in December. In Japan, the Nikkei 225 slipped 1.39 % as chip names Advantest, SoftBank and Tokyo Electron fell, while the Topix rose 0.37 %. Q1 GDP grew 2.1 % annualised and about 70 % of 1,600 listed stocks advanced.

Nikkei Falls as Tech Takes NVIDIA Hit

James Demmert of Main Street Research said Nvidia’s earnings are pivotal and highlighted AI growth, rising bond yields, margin pressure from memory costs and China sales. President Donald Trump said negotiations with Iran were in the final stages, a comment that helped lower Brent crude. Analysts warn the 1,400 % five-year rally may have inflated expectations and that memory-price pressure could compress margins, with China exposure a concern. CNBC reports a 0.9 % S&P 500 rise and a 452-point Dow gain; Reuters cites a 0.99 % S&P 500 increase and a 529-point Dow rise; Poluang notes the index fell 0.67 % on Tuesday.

Reuters

• “Nvidia is the most important AI stock, and since so much of the stock market's gains over the past few years have been driven by the incredible capabilities of AI, the outcome of Wednesday's earnings report means everything for this market,” — James Demmert, Chief Investment Officer, Main Street Research

CNBC

• “The sticking points in Nvidia's earnings report are any signs of margin compression due to rising memory prices, along with how the company is navigating sales in China,” — James Demmert, Chief Investment Officer, Main Street Research

CNBC

• “Nvidia's earnings come at just the right time when the market needs some reassurance that the promise of AI can overpower the headwind of rising bond yields,” — James Demmert, Chief Investment Officer, Main Street Research

Reuters

Nvidia’s earnings will be released after the close on May 20, followed by the Fed’s minutes. Investors will watch AI demand, memory-price trends and China sales. In Japan, the Nikkei’s direction will hinge on the earnings outcome and global chip sentiment, while upcoming earnings from Target, Walmart and Lowe’s and policy signals from the Fed and Bank of Japan will also affect markets.

S&P 500 falls amid rising bond yields but trade...