<p>Justin Sullivan / Getty Images</p>

Justin Sullivan / Getty Images

Key Takeaways

  • Nvidia shares gained over 6% Tuesday as Goldman Sachs strategist Scott Rubner called it the “most important stock” of the year.
  • Rubner suggested Nvidia’s earnings later in the month could herald a rally for the stock market, along with the Federal Reserve’s Jackson Hole Economic Symposium.
  • The market could be poised for “super clean” positioning at the start of September for a Labor Day rally, he said.
  • However, Rubner cautioned investors could face a “tricky” second half of September, before welcoming new highs in the fourth quarter of 2024.

Nvidia (NVDA) shares gained over 6% Tuesday as Goldman Sachs strategist Scott Rubner called it the “most important stock” of the year.

Rubner suggested the chipmaker’s earnings later in the month could herald a rally for the stock market, along with the Federal Reserve’s Jackson Hole Economic Symposium.

How Markets Could Be Poised for a Labor Day Rally

Nvidia reports earnings on Aug. 28, with the strategist expecting an earnings-fueled post-market move could potentially mark “the technical low for the largest index weights and AI darlings,” ahead of a September rally.

Rubner said the market could be poised for a Labor Day rally, leaving “a short term window to buy the dip as technical pressure eases.”

However, the Goldman strategist warned investors could face a “tricky” second half of September ahead of the U.S. presidential election before welcoming new highs in the fourth quarter.

Nvidia shares closed 6.5% higher at $116.14 Tuesday, helping make up for recent losses. With Tuesday’s gains, the stock has more than doubled in value since the start of the year.

Read the original article on Investopedia.