By Lewis Krauskopf

NEW YORK (Reuters) -An earnings report from semiconductor giant and artificial intelligence bellwether Nvidia takes center stage for Wall Street in the coming week, as stocks hit a speed bump of worries over federal deficits driving up Treasury yields.

U.S. equities have pulled back this week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the U.S. government's $36 trillion in debt. Long-dated U.S. Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5% and hitting its highest level since late 2023.

Focus will shift to Wednesday's quarterly results from Nvidia, one of the world's largest companies by market value whose stock is a major influence on benchmark equity indexes.

"All eyes are going to be on Nvidia's report," said Chuck Carlson, CEO of Horizon Investment Services. "The whole AI theme has been a major driver of the market and Nvidia is at the epicenter of that theme."

Nvidia will be the last of the "Magnificent Seven" megacap tech and growth companies to report results for this period. Their stocks have been mixed in 2025 after leading the market higher as a group in the last two years.

Nvidia shares are down 1% this year after soaring over 1,000% from late 2022 through the end of 2024 as its AI chip business spurred massive increases in revenue and profits.

Nvidia's first-quarter earnings likely jumped about 45% on revenue of $43.2 billion, analysts estimated in an LSEG poll.

After big tech companies earlier in the quarter signaled robust AI-related spending, Nvidia can deliver a strong message about AI and how companies' spending plans are faring, said Art Hogan, chief market strategist at B Riley Wealth.

"Nvidia can reinvigorate the enthusiasm for that theme."

Nvidia, popular among smaller retail shareholders, is an investor sentiment indicator, said Wasif Latif, chief investment officer at Sarmaya Partners.

"Given its sheer size and attention that it is commanding, there are going to be a lot of people looking for what happens with the stock," Latif said.

U.S.-China relations could also be in focus with Nvidia's report. The company said last month it would take $5.5 billion in charges after the U.S. government limited exports of its H20 artificial intelligence chip to China.

Trade developments have whipsawed the stock market this year, especially after U.S. President Donald Trump's April 2 announcement of sweeping tariffs on imports globally set off extreme asset price volatility.