Equity markets failed to advance despite a blowout report from NVIDIA. The reports cements the company as the leader in AI and led to a sell-off in other AI-related chip stocks. With the world leaning hard into NVIDIA chips to power data centers and AI, the other chip makers stand to lose market share and that caused the S&P 500 to fall more than 1.25% at the session's low.

The bad news for investors is that Thursday's decline confirms significant resistance at the 30-dau moving average. Resistance at the moving average could turn into a market sell-off, given the outlook for inflation and the Fed, and a catalyst is coming up next week. The July reading of the PCE price index is due out and may spook the market. The index doesn't have to be hot, only consistent with persistent inflation, to lead the market into believing what the FOMC is indicating; there will be at least 1 more interest rate hike this year.