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Nvidia Earnings Tomorrow: Was Monday's Nasdaq Selloff a Setup or Just Nerves?
Nvidia reports Wednesday after the close, and the AI trade sold off first. Monday's Nasdaq slide against a rising Dow was a rotation, not a rout. Here's the bull read, the bear read, and the two NVDA price zones a rules-based reader watches into the print.
Tech fell, the Dow rose, and the two biggest events of the week haven't happened yet.
HeyTheo Research — August 25, 2026
The Quick Read
Nvidia earnings land after the close on Wednesday, August 26, 2026, and the Nasdaq Composite fell 0.76% on Monday as Nvidia (NVDA), Micron (MU), Tesla (TSLA), AMD (AMD) and Broadcom (AVGO) dropped between 3% and 6%. The Dow Jones rose 0.26% in the same session, so this was money moving out of AI-linked names, not a market-wide selloff. With Fed Chair Warsh due at Jackson Hole later this week, the week's direction is still undecided.
Nvidia earnings arrive tomorrow after the bell, and on Monday the market sold the AI trade first and asked questions later. Nvidia (NVDA) lost about 3%, Micron (MU) about 6%, Tesla (TSLA) about 4%, AMD (AMD) about 3.5% and Broadcom (AVGO) about 3%, according to Yahoo Finance and Goodreturns. The Nasdaq 100 gave up roughly 285 points.
Here's the thing: the Dow went up. As Tuesday's session opens, that detail matters more than the red on the Nasdaq.
What Actually Happened on Monday
The short answer is a rotation, not a rout. Money left the growth and AI names and moved toward the older-economy stocks that make up the Dow.
Index / Asset | Monday Close | Session Move |
|---|---|---|
Nasdaq Composite | 25,980.19 | -0.76% |
Nasdaq 100 | 29,023.18 | -0.97% |
S&P 500 | 7,652.86 | -0.28% |
Dow Jones | 53,417.16 | +0.26% |
Brent crude | $92.17 | -2.35% |
Gold | ~$4,700 | Testing breakout |
Bitcoin | ~$77,000–$78,000 | Consolidating |
Source: Yahoo Finance, Goodreturns, FXCM, as of the August 24, 2026 US close.
The Bull Read: Nerves, Not a Break
The case that this was pre-earnings jitters rests on what didn't fall. The Dow climbed 140 points. The S&P 500 slipped only 0.28%. Brent crude dropped 2.35% to $92.17, which is a small tailwind for the companies that were bought on Monday.
In plain English: nobody ran for the exits. They repositioned before a binary event. Nvidia (NVDA) is still holding the $205–$210 area that has acted as a floor recently, and a 3% move two days before earnings is not unusual for a stock that reports numbers the whole market is waiting on.
If Wednesday's report shows data-center demand still growing, Monday's sellers are buyers again on Thursday. That's the bull read, and it's a reasonable one.
The Bear Read: The AI-Spend Question Is Real
The case that this was more than nerves rests on the pattern, not the day. The market has been asking for months whether the money going into AI infrastructure is earning a return, and Micron's (MU) 6% slide is the clearest sign yet that the doubt reaches the supply chain, not just the headline names.
Gold near $4,700 is testing a breakout level. That is not what a market looks like when it's relaxed. Add a Fed Chair speech at the end of the week, and you have investors who would rather hold less risk into two unknowns than one.
Put simply: the bears aren't saying Nvidia will miss. They're saying the bar is high enough that even a good quarter may not be good enough.
Where the Rules Stand Going Into Wednesday
Nvidia (NVDA) opens Tuesday sitting between two levels that traders have been watching: roughly $205–$210 below and $220–$225 above. A close outside either band after earnings is the thing a rules-based reader looks for, because it settles which side of Monday's argument the market took. Today's session is the last full day of positioning before that answer arrives.
On HeyTheo, that trigger isn't hidden. You can see exactly what fires it and backtest it before you trust it. And if you want to know whether Micron (MU) or AMD (AMD) has printed a similar pre-earnings dip in the past, you can ask Theo the same question about any name in the basket.
The Bottom Line
Monday's Nasdaq selloff ahead of Nvidia earnings was a repositioning into a big week, and the Dow's gain is the evidence. A disciplined reader watches three things: whether NVDA holds $205–$210 through Tuesday and then closes outside $205–$225 after the report, whether Micron (MU) recovers or extends its 6% drop, and what Fed Chair Warsh says at Jackson Hole. Check the rules behind any trigger before you act on it, and remember that whatever you decide, you trade through your own broker. HeyTheo helps you decide. More reads on the HeyTheo blog.
Frequently Asked Questions
Why did the Nasdaq fall ahead of Nvidia results?
Investors reduced exposure to AI-linked stocks before a high-stakes earnings report and a Fed speech in the same week. The Nasdaq Composite fell 0.76% and the Nasdaq 100 fell 0.97% on Monday, August 24, 2026, while the Dow rose 0.26%, which shows the selling was concentrated in tech rather than across the market.
What is the Nvidia earnings impact on AI stocks likely to be?
Nvidia's results tend to move the whole AI group because it supplies the chips most data centers are built around. Micron (MU), AMD (AMD) and Broadcom (AVGO) all fell 3% to 6% on Monday, so the group is already priced for uncertainty. A strong data-center number typically lifts the group; a weak one tends to hit suppliers like Micron hardest.
How did the Dow gain despite the tech selloff?
The Dow is weighted toward industrial, financial and consumer companies, not chipmakers. On Monday money rotated from AI names into those sectors, lifting the Dow 140 points to 53,417.16 even as the Nasdaq fell.
How might the US stock market react to the Fed's Jackson Hole speech?
Markets react to Jackson Hole based on whether the Fed Chair sounds more or less concerned about inflation than expected. Fed Chair Warsh speaks later this week, with the federal funds rate at 3.50%–3.75%. A firmer tone on inflation usually pressures growth stocks and supports the dollar; a softer tone tends to do the opposite.
Is Nvidia a Golden Cross or breakout setup right now?
Not yet, on the levels traders are watching. Nvidia (NVDA) is trading inside a range of roughly $205–$210 support and $220–$225 resistance. A 52-Week Breakout rule would need a close above the upper band, and Monday's 3% drop moved the stock away from it rather than toward it.
Sources
Yahoo Finance — US market close and index levels, August 24, 2026 (accessed August 25, 2026)
Goodreturns — Nasdaq, Dow and individual stock moves, August 24, 2026 session (accessed August 25, 2026)
FXCM — Brent crude, gold and Bitcoin levels, August 24, 2026 (accessed August 25, 2026)
Univest — US market wrap, August 24, 2026 session (accessed August 25, 2026)
Federal Reserve — FOMC statement, July 2026 (federal funds target range 3.50%–3.75%)
Disclaimer
This article is published by HeyTheo Research for informational and educational purposes only. It is not investment advice, a recommendation, or an offer or solicitation to buy or sell any security. HeyTheo does not execute trades or manage money — you trade through your own broker; HeyTheo helps you decide. Any strategies, triggers, or backtests discussed are illustrative. Backtested results are hypothetical, carry inherent limitations, and are not indicative of future results. All investing involves risk, including possible loss of principal. Consider your own objectives and consult a licensed financial professional before making any investment decision. Data referenced is sourced as of the dates noted and may change.