Wall Street’s main indexes fell slightly on Wednesday, after a sharp rally in the previous session sparked by easing trade tensions, as investors awaited AI bellwether Nvidia’s results and minutes from the U.S. Federal Reserve’s last policy meeting.
Nvidia is expected to report a 66.2% surge in first-quarter revenue, according to data compiled by LSEG. Shares of the chipmaker slipped 0.2% ahead of its earnings, due to be released after markets close.
“How AI demand plays out has far-reaching implications for the U.S. market as we head into June, and many will be waiting to see today’s report before doubling into the May bounceback in risk,” said Bob Savage, head of markets macro strategy at BNY.
Traders in the options markets are bracing for industry-wide volatility, with defensive options contracts drawing heavy attention for the VanEck Semiconductor ETF the largest semiconductor ETF.
At 11:22 a.m. ET, the Dow Jones Industrial Average fell 102.80 points, or 0.24%, to 42,240.85, the S&P 500 lost 10.95 points, or 0.18%, to 5,910.59, and the Nasdaq Composite lost 10.66 points, or 0.06%, to 19,187.97.
Most megacap and growth stocks shed initial gains and were mostly flat. Meta Platforms outperformed with a 0.5% rise.
Ten of the 11 major S&P 500 sub-sectors fell, with energy and utilities being the biggest laggards.
Dow component Salesforce was down 0.7% and is also scheduled to report earnings after the bell.
Wall St rises more than 1pc as Trump backs down on EU tariffs
All three main Wall Street indexes soared in the last session after U.S. President Donald Trump backed down over the weekend from his threat of 50% tariffs on imports from the European Union.
The S&P 500 is now about 4% off its record closing high, reached on February 19, falling as much as 18.9% below that level in the wake of Trump’s erratic tariff announcements that have whipsawed markets for much of his second term.
A poll of strategists and analysts conducted by Reuters showed that many market participants expected the benchmark index to finish the year near current levels.
Minutes from the U.S. Federal Reserve’s last policy meeting, when the central bank held borrowing costs steady, are slated for release at 2 p.m. ET.
Yields on long-dated U.S. government bonds were slightly higher after scaling multi-month highs last week. Global bond markets have been in the spotlight over concerns about fiscal sustainability in major economies including the United States and Japan.
In earnings, Michael Kors-owner Capri Holdings advanced 4.8% after its fourth-quarter revenue beat analyst estimates.
Shares of sportswear retailer Dick’s Sporting Goods gained 1.2% after its first-quarter results beat estimates.
Cybersecurity firm Okta flagged risks related to the uncertain economic environment but stuck to its full-year outlook. Its shares dropped nearly 14%.
Declining issues outnumbered advancers by a 2.72-to-1 ratio on the NYSE and by a 1.91-to-1 ratio on the Nasdaq.
The S&P 500 posted 21 new 52-week highs and no new lows, while the asdaq Composite recorded 51 new highs and 49 new lows.
