NEW YORK: Wall Street’s main indexes struggled for direction on Wednesday as investors kept to the sidelines ahead of AI chip leader Nvidia’s quarterly results and minutes of the Federal Reserve’s policy meeting, due later in the day.
All eyes will be on whether semiconductor bellwether Nvidia’s first-quarter results, due after markets close, can meet sky-high expectations and sustain the bumper gains the company’s shares and other AI-related stocks recorded.
Nvidia has emerged as the third-largest US company by market value after a more-than 92% surge in its shares this year and an over-threefold jump in 2023.
The company’s shares were down 0.5%, after hitting a nearly two-month high on Tuesday.
“The most important piece of the puzzle is whether Nvidia meets and beats expectations on the revenue line... investors have certainly ramped up their expectations of a beat quarter,” said Art Hogan, chief market strategist at B. Riley Wealth.
Wall Street’s recent bull run has carried all three major indexes to record highs this month, driven by a strong earnings season as well as renewed hopes for interest-rate cuts and a so-called soft landing for the US economy.
The Nasdaq briefly touched a fresh record high in choppy trading.
Analysts polled by Reuters see the S&P 500 closing the year near current levels, at 5,302 points, but warned the index’s strong run means it risks a correction in the coming months.
Investors are also keenly awaiting minutes from the US central bank’s latest policy meeting, due at 2 p.m. ET, for clarity on the timing of a rate cut. Several policymakers have reiterated the need to wait for further signs of easing inflation before cutting rates.
“We have every Fed President and governor with the microphone leaving no unexpressed thoughts out there... We’ve got a pretty good handle on where everybody stands,” Hogan said.
Traders see 72% odds of the Fed cutting rates in September by at least 25 basis points, according to CME’s FedWatch Tool.
At 11:28 a.m. ET, the Dow Jones Industrial Average was down 47.64 points, or 0.12%, at 39,825.35, the S&P 500 was down 1.70 points, or 0.03%, at 5,319.71, and the Nasdaq Composite was up 17.61 points, or 0.10%, at 16,850.24.
Chipmaker Analog Devices jumped 7.8%, boosting the S&P 500 Information Technology index after forecasting third-quarter revenue above expectations.
Energy was the worst hit sector, down 1.7%, tracking lower oil prices.
Retailer Target dropped 7.5% after its quarterly earnings and current-quarter forecast missed estimates.
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