Wall Street Mixed as Investors Await Nvidia Earnings Report/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks traded mixed Wednesday as investors awaited Nvidia’s highly anticipated earnings, seen as a key test of the artificial intelligence boom. The S&P 500 stayed near record highs, while the Dow rose and the Nasdaq dipped. Markets also eyed Federal Reserve policy amid Trump’s clash with central bank officials.
Wall Street Mixed Ahead of Nvidia Earnings Quick Looks
- S&P 500 flat, Dow up 87 points, Nasdaq down 0.2%.
- Nvidia shares fell 1.1% before its closely watched quarterly report.
- Kohl’s stock jumped nearly 20% after strong earnings beat forecasts.
- J.M. Smucker dropped over 6% on weaker-than-expected results.
- Trump escalated fight with Fed, attempting to fire Governor Lisa Cook.
- Traders expect a September rate cut despite tariff-driven inflation risks.
- Oil prices rose; European markets mostly lower, Asia closed mixed.
Wall Street Mixed as Investors Await Nvidia Earnings Report
Deep Look
Wall Street opened cautiously Wednesday as investors held back ahead of a pivotal earnings report from chipmaker Nvidia, whose results could set the tone for both artificial intelligence optimism and broader market sentiment.
The S&P 500 hovered just above flat, up less than 0.1%, staying near record highs reached earlier this month. The Dow Jones Industrial Average climbed 87 points, or 0.2%, while the Nasdaq composite dipped 0.2%, dragged lower by technology shares.
Nvidia in Focus
Nvidia’s quarterly earnings report, due after markets close, is widely considered a barometer for the strength of the AI sector. The company dominates production of chips that power artificial intelligence platforms, giving it outsize influence over Wall Street’s outlook. Shares slipped 1.1% in early trading, reflecting nervous anticipation.
“Nvidia has essentially become a market bellwether,” analysts noted. “Its performance could either reinforce confidence in the AI-driven rally or trigger doubts if results disappoint.”
Movers of the Day
A number of companies posted earnings results that swung their stock prices.
- Kohl’s surged nearly 20% after posting stronger-than-expected quarterly earnings, signaling resilience in the struggling retail sector.
- J.M. Smucker slumped more than 6% after reporting fiscal first-quarter results that fell short of Wall Street expectations.
- Cracker Barrel rose 5.2% after reversing plans to change its logo, following a viral backlash that drew in President Donald Trump.
Bond Yields and Commodities
Treasury yields moved narrowly. The 10-year Treasury yield inched up to 4.27% from 4.26% Tuesday, while the two-year yield slipped to 3.65% from 3.68%. Crude oil prices advanced, while European equities were mostly lower and Asian markets ended mixed.
Political Pressure on the Fed
Markets remain uneasy following Trump’s latest battle with the Federal Reserve. The president recently tried to fire Fed Governor Lisa Cook, whose attorney pledged legal action to stop the move. Trump has also threatened Fed Chair Jerome Powell, repeatedly mocking him even as Powell’s vote is only one of 12 shaping interest rate policy.
The Fed has kept its benchmark rate steady since late 2024 after inflation eased, but officials remain wary of Trump’s unpredictable tariffs, which could rekindle price pressures. Businesses are already warning that tariffs are raising input costs, which may feed into consumer prices.
Investors Expect Rate Cuts
Despite political drama, traders overwhelmingly expect the Fed to cut interest rates at its September meeting. According to CME Group data, markets see a 90.3% chance of a quarter-point cut. Lower borrowing costs could support investment and spending, though they risk reigniting inflation at a fragile time for the labor market.
The Fed began cutting rates in late 2024 after several years of hikes designed to curb inflation. Strong consumer spending and job growth helped the economy avoid a recession, but concerns are mounting that higher tariffs and slower hiring could challenge stability.
Inflation Data Ahead
Investors are also awaiting Friday’s release of the Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge. Economists forecast that inflation held steady at around 2.6% in July year-over-year. The data could influence Fed decisions in September, especially if it shows renewed pricing pressure tied to tariffs.
For now, Wall Street is biding its time, with attention squarely on Nvidia’s report. A strong showing could reinforce AI’s central role in powering market growth. A miss, however, could jolt confidence and interrupt the market’s record-setting momentum.
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