U.S. stocks finished Wednesday narrowly lower as investors anticipate Nvidia’s earnings. With inflation readings largely inline and stalled spending, the market expected the Fed to likely hold interest rates the same for the next meeting.
By the market close. The Dow declined 114 points to 53464, the NASDAQ slipped 0.08% to 26130, and the S&P 500 was essentially flat at 7676.
Market participation was mixed rather than broadly risk-off. Healthcare was the most notable area of weakness, while several large-cap technology names provided support even as Nvidia declined ahead of its results. The restrained index moves reflected a market waiting for clearer direction from both corporate earnings and interest rates rather than a decisive shift in sentiment.
Treasury yields barely moved with no major catalyst that would signal a significant shift of outlook. Both the 5-year and 10-year Treasury yield rose 1 basis point to 4.36% and 4.65% respectively.
Nevertheless, today’s market does not focus on the regular session. The big-ticket item came after market close. After the closing bell, Nvidia reported quarterly revenue and adjusted earnings above Wall Street expectations and issued revenue guidance that also exceeded consensus forecasts. Despite the strong results, shares initially slipped in after-hours trading, underscoring how demanding expectations have become for the leading AI chipmaker. Investors will now focus on management’s outlook for AI infrastructure spending, the transition toward its next-generation Rubin platform, and cost pressures.
On the horizon, Friday’s Jackson Hole remarks from Federal Reserve Chair Kevin Warsh could shape expectations for September policy.