Two crucial issues for the US stock market—the artificial intelligence boom and inflation-sensitive consumer spending—will come under scrutiny next week with the release of earnings reports from semiconductor giant Nvidia and a host of retailers led by Walmart.

Stock indexes have seen a significant rise in recent weeks, with the benchmark S&P 500 and the tech-heavy Nasdaq Composite nearing record highs. Allen Bond, portfolio manager at Jensen Investment Management, said two factors are driving market movements in almost parallel: developments in artificial intelligence and the sharp rise in energy prices resulting from the war in Iran.

Bond added: “There isn’t a huge overlap between these two factors, but from day to day, these developments can have a significant impact on the market.” Stocks fell on Friday as rising crude oil prices fueled inflation fears, which also sent bond yields soaring.

Nevertheless, the S&P 500 is up nearly 17% since its low for the year in late March and is now up more than 8% in 2026. After such a sharp rally, many investors said the market was poised for a recovery. Some, however, worried that a relatively small number of stocks had driven the recent gains, suggesting the rally might not be as strong as it appeared. For example, as of Thursday morning, only a fifth of the S&P 500’s constituents had outperformed the index since its low on March 30, according to data from the London Stock Exchange Group.

Patrick Ryan, chief investment strategist at Madison Investments, said: “There is indeed a small group of companies driving the overall index returns again.” The market isn't necessarily healthy when so many stocks are lagging behind.

Nvidia's earnings are just around the corner, with semiconductor stocks surging: Nvidia reports its results on Wednesday, as the first quarter of exceptionally strong earnings growth for US companies draws to a close.