FX.co ★ Wall Street Slips Ahead of Key Nvidia Report

On Wednesday, U.S. stocks experienced declines as investors processed earnings reports, insights from Federal Reserve minutes, and escalating trade tensions ahead of Nvidia's earnings announcement. The S&P 500 and Nasdaq both fell by 0.5%, while the Dow decreased by 224 points. Despite the downturn, Nvidia's shares rose by 1% prior to the earnings release, seen as a significant gauge of AI-driven market sentiment. The Federal Reserve minutes revealed a cautious approach, highlighting the challenges posed by "difficult tradeoffs" amid prevailing economic uncertainties. Trade concerns reemerged following the Trump administration's directive for U.S. companies to suspend certain semiconductor software sales to China, impacting entities like Cadence and Synopsys. Okta's shares plummeted by over 13% due to disappointing guidance, whereas Abercrombie & Fitch saw a 16% increase, and Dick's Sporting Goods rose by 2% following robust financial reports. With Nvidia's earnings report on the horizon, investors are hopeful that the AI powerhouse will either rejuvenate market momentum or potentially exacerbate market volatility, contingent on indications related to demand and its business dealings with China.