US stocks slipped away from record highs on Wednesday as investors eagerly awaited Nvidia’s pivotal earnings and more clues on the Federal Reserve’s stance on interest-rate cuts.
S&P 500 futures dipped roughly 0.1%, pulling back from a recent record close. Dow Jones Industrial Average futures also fell 0.1%, while Nasdaq 100 contracts remained flat.
Investors have been on edge as they anticipate Nvidia’s first-quarter results, set to be released after the bell. The chipmaker’s performance is expected to have a significant impact on the broader market, especially in the AI sector.
Additionally, market participants are awaiting the release of minutes from the Fed’s last meeting to gain insight into policymakers’ views on inflation and potential rate cuts. UK inflation data has already raised concerns about price pressures, adding to the uncertainty.
Target’s disappointing quarterly results have also fueled worries about the economy. The retail giant reported lower-than-expected earnings, attributing the decline to consumer caution amid inflation concerns. Target’s stock tumbled 8% in pre-market trading.
As the market braces for Nvidia’s earnings and the Fed’s minutes, volatility is expected to increase. Traders are preparing for a potential 8.6% swing in Nvidia’s stock price based on options market premiums.
Goldman Sachs’ latest research on the country’s rising debt-to-GDP ratio has also added to concerns about fiscal sustainability. The bank’s chief economist warned that the outlook for US fiscal health has become more challenging in recent years, with the debt-to-GDP ratio projected to reach 130% by 2034.
Overall, the combination of Nvidia’s earnings, the Fed’s minutes, and economic data has created a tense atmosphere in the markets, with investors closely monitoring developments for potential market-moving events.
