Nvidia's earnings on Wednesday will be the market's biggest event this week.
And new data highlighted by Bloomberg on Tuesday suggests there could be trillions of dollars ready for deployment once these results clear.
Strategists at BBVA cited by Bloomberg see institutional investors as having exposure to US stocks that is “far from exuberance levels,” meaning the $7 trillion currently parked in money market funds could come flowing back into stocks depending on these earnings break.
Throughout 2025, numerous headwinds have faced US stocks from an allocation standpoint, with the “Sell America” trade, tariff uncertainty, and rising interest rates offering all sorts of competition to US equities after two years in which Big Tech made US stocks the most important game in town for investors.
The idea, we'd note, is not that this cash will pile into Nvidia stock itself — or even Big Tech, necessarily — but that enthusiasm for US stocks which has waned considerably in recent months could be restored if twin tailwinds of a more positive trade backdrop and a return to the buoyant AI story powered by Nvidia return in force this week.
