Wall Street Awaits Nvidia Earnings Amid Market Calm/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street traded steadily Wednesday as investors await Nvidia’s critical earnings report. Retailer stocks surged on strong quarterly results, while Fed meeting minutes and tariffs loom large. Nvidia’s performance is expected to impact AI-driven market momentum.
Nvidia Earnings + Market Calm Quick Looks:
- S&P 500 up 0.2%, just 3.5% below record highs.
- Nvidia earnings eyed as AI leader nears reporting.
- Abercrombie & Fitch jumps 27.4% on strong earnings.
- Retail sector boosted by upbeat reports from Dick’s Sporting Goods.
- Okta drops 12% despite strong quarter; expectations ran high.
- GameStop down 3% after revealing major Bitcoin purchase.
- Federal Reserve minutes expected later today to reveal tariff concerns.
- Global markets mixed, with South Korea’s Kospi up 1.3%.
- 10-year Treasury yield climbs to 4.46%.
Deep Look: Wall Street Steadies as Nvidia Earnings Take Center Stage
NEW YORK — U.S. stocks edged higher in early trading Wednesday, showing resilience just ahead of a pivotal earnings announcement from AI juggernaut Nvidia. The S&P 500 rose 0.2%, narrowing the gap to its record high to just 3.5%, as investor sentiment remained buoyant after weeks of volatility triggered by President Donald Trump’s escalating trade war.
The Dow Jones Industrial Average increased by 60 points, or 0.1%, while the Nasdaq Composite added 0.2%. This steady performance follows a notable rebound that pulled the S&P back from a 20% drop only a month ago.
All eyes now turn to Nvidia, set to report after markets close. The chipmaker has become symbolic of the artificial intelligence boom, and its results could either validate or undermine the heavy optimism that has driven its meteoric rise. Despite a quieter 2025 so far, Nvidia’s stock has already priced in lofty expectations—making the stakes even higher.
Retail Stocks Deliver Surprises
Retail earnings brought positive news to the market. Abercrombie & Fitch surged 27.4%, with earnings and revenue surpassing Wall Street’s forecasts. CEO Fran Horowitz attributed this to global expansion and growth in its Hollister brand, which helped offset Abercrombie’s weakness.
Dick’s Sporting Goods also impressed investors, gaining 2.7% after reaffirming its full-year guidance and beating quarterly expectations.
On the flip side, Okta plummeted 12%, despite exceeding earnings expectations. Analysts noted that investor enthusiasm may have set the bar unrealistically high, given Okta’s 60% gain earlier this year.
Macy’s presented a mixed bag, with early gains reversed to a 0.6% decline. While revenue and profit drops were smaller than anticipated, the company cut its profit forecast, citing tariff effects and cooling consumer spending.
GameStop fell 3% after disclosing it had purchased over 4,700 bitcoin, totaling over $510 million. The move echoes a strategy seen in other companies like Tesla, indicating a shift in treasury management but raising investor questions about risk.
Fed Minutes & Tariffs in Focus
Investors also await the Federal Reserve’s meeting minutes, due Wednesday afternoon. The minutes will shed light on discussions around inflation risks and labor market pressure, particularly under the strain of the Trump administration’s expansive tariffs.
Analysts expect the Fed to maintain a cautious stance on interest rates, with any deviation likely to spark market reactions. Uncertainty over geopolitical events and inflation keeps the market on alert.
Global Market Snapshot
International markets showed mixed performance:
- European and most Asian indexes posted modest losses.
- South Korea’s Kospi surged 1.3%, driven by gains in Samsung Electronics and other major tech firms.
Bond markets were also active, with the 10-year Treasury yield rising to 4.46% from 4.43% a day earlier, reflecting investor repositioning ahead of macroeconomic developments.
As Wall Street navigates these intersecting storylines—earnings, trade war fallout, and interest rate speculation—investors are bracing for potential volatility following Nvidia’s earnings release.
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