U.S. stocks on Monday prepared to resume a rally boosted by the Federal Reserve’s message that interest rate cuts are imminent, ahead of a busy week dominated by Nvidia’s (NVDA) earnings report.

Futures on the S&P 500 (ES=F) rose about 0.2%, while futures on the Dow Jones Industrial Average (YM=F) gained 0.1%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) were largely unchanged after the major indexes all gained more than 1% this week.

Stocks are approaching new record highs after Fed Chairman Jerome Powell made it clear that the Fed is ready to cut interest rates in September. The benchmark S&P 500 (^GSPC) is less than 1% away from surpassing the all-time high reached in July.

Markets quickly moved to price in cuts totaling 1% by the end of 2024. But with only three Fed meetings left this year – in September, November and December – and the August jobs report still pending, Wall Street is wondering if and when a 0.5% cut is likely.

Now the focus is firmly on Nvidia’s results – the most important event of the week – which will likely determine whether market sentiment remains bullish. If the chipmaker’s results fail to meet lofty expectations on Wednesday, it could further dent the AI ​​trade that has driven stock gains – and in turn test the market’s recovery from August lows.

Also due on Friday is an update on Fed policymakers’ preferred inflation indicator, the PCE index, which is likely to be used in interest rate calculations. Second-quarter GDP is also due on Thursday.

Elsewhere, oil prices rose nearly 3% after reports of production halts in Libya and fears of escalating tensions in the Middle East following attacks by Israel and Hezbollah. The global benchmark Brent crude (BZ=F) rose to $81.81 a barrel, while the U.S. benchmark WTI crude (CL=F) changed hands at $76.90 a barrel.