S&P 500 & Tech Sector: Nvidia is Decisive This WeekNVIDIA CorporationBATS:NVDASwissquoteAs fundamental uncertainty is very high in this last week of February, the S&P 500 index is under the strong direct influence of Nvidia’s financial results (the world’s largest market cap on the stock market), which will be released this Wednesday after the US market close. These results will have a decisive impact on the S&P 500’s end-of-month trend, both fundamentally and technically. On the fundamental side, Nvidia must justify the massive investments made in artificial intelligence with solid results. The “Magnificent Seven” stocks are not equally exposed on this topic, and I have provided a full summary in the table below. Nvidia must justify its high valuation with results and forward-looking earnings that continue to rise. Here are the dominant technical and fundamental factors this week related to Nvidia’s financial results on Wednesday: • The technology sector represents 33% of the S&P 500 index calculation, a largely dominant weight • Within technology, the semiconductor sub-sector is the most important • Within semiconductors, Nvidia alone accounts for 50%! • Technically, the double focus this week for the trend will be whether Nvidia and the technology sector preserve the 200-day moving average The chart below shows the S&P 500 Technology sector in weekly Japanese candlesticks, highlighting this week’s key challenge with Nvidia’s results and the preservation of the 200-day moving average. The chart below shows daily Japanese candlesticks for Nvidia stock. Beyond its direct weight in the index, Nvidia acts as a psychological market catalyst. Better-than-expected results could reignite the tech rally and support the S&P 500 overall, while a disappointment would trigger a rapid corrective move, amplified by the high capital concentration in tech. Close attention should therefore be paid to operating margins, AI-related revenue growth, and year-ahead guidance, as these indicators will serve as a benchmark for the valuation of other sector leaders. The data below comes from WisdomFree and Gurufocus, illustrating the weight of the technology sector in the S&P 500 and Nvidia’s weight within semiconductors. Both weights decisively impact the S&P 500 index evolution. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. The presented idea (including market commentary, market data and observations) is not a work product of any research department of Swissquote or its affiliates. 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