All eyes are on Nvidia (NVDA) as it is set to report its second quarter earnings on Wednesday, August 28. Great Hill Capital chairman and managing member Thomas Hayes joins Wealth! to break down the market's outlook for the rest of the year and how the chip giant's earnings could weigh on the performance of tech-heavy indexes (^IXIC, ^GSPC). Hayes expects a shift from large cap to small-cap stocks (^RUT) as the Federal Reserve starts easing interest rates. He notes that small caps are expected to grow earnings 7% this year and 37% next year as Magnificent Seven earnings decelerate from 30% this year to 18% next year. He adds that if Nvidia misses its earnings expectations, "you're going to start to see a lot of the stocks under the surface start to pick up the slack." Nvidia has been leading the charge in the growth of the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) this year. Hayes expects the chip giant's second quarter earnings to be "okay," as margins and earnings growth could fall as a result of Nvidia's spending. "I think there's going to come a time where investors say, 'Where's the return on our investment?'" Hayes explains. However, he believes that right now, "Nvidia's priced for perfection," pointing to its $3.2 trillion valuation, which is worth 11% of the US's total GDP (gross domestic product). #news #youtube #NVIDIA About Yahoo Finance: Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life. - Get the latest news and data at finance.yahoo.com - Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO) - Follow Yahoo Finance on social: X: http://twitter.com/YahooFinance Instagram: https://www.instagram.com/yahoofinance/?hl=en TikTok: https://www.tiktok.com/@yahoofinance?lang=en Facebook: https://www.facebook.com/yahoofinance/ LinkedIn: https://www.linkedin.com/company/yahoo-finance