Wall Street slips as Nvidia earnings loom, Fed minutes reinforce caution

4:12pm: 

US stocks took a step back on Wednesday as investors hit pause ahead of a key earnings report from Nvidia and sifted through the latest insights from the Federal Reserve. After Tuesday’s strong gains—thanks in part to cooling tariff tensions with the EU—Wall Street turned more cautious, with all major indexes closing lower.

The Dow Jones shed 245 points, or 0.6%, to finish at 42,099, while the S&P 500 and Nasdaq also lost ground, down 0.6% and 0.5% respectively.

The small-cap Russell 2000 took the biggest hit, falling 1.1%.

Much of the day’s hesitation centered around Nvidia, as traders braced for the chipmaker’s earnings, seen as a litmus test for the broader AI boom. Meanwhile, the Fed’s meeting minutes didn’t shift the narrative much—policymakers are still playing the waiting game, looking for clearer signs on inflation before making their next move.

3:47pm: Proactive news headlines

GameStop Corp (NYSE:GME) revealed it purchased 4,710 Bitcoin worth about $513 million, deepening its move into cryptocurrency following a recent policy update.

First Phosphate Corp. (CSE:PHOS, OTCQB:FRSPF) raised approximately $2.4 million through a non-brokered private placement involving Flow-Through Shares and Hard Dollar Units.

Abercrombie & Fitch (NYSE:ANF) posted record Q1 sales of $1.1 billion, with a 22% jump in Hollister brand revenue driving 8% overall growth.

Candel Therapeutics Inc (NASDAQ:CADL) was granted RMAT designation by the FDA for its lead cancer therapy, CAN-2409, targeting localized prostate cancer.

North Bay Resources Inc. (OTC:NBRI) completed settlement of its second and third gold concentrate shipments from the Fran Gold Project, totaling 667 wet pounds.

Midnight Sun Mining Corp (TSX-V:MMA, OTCQB:MDNGF) signed an earn-in agreement for the Luswishi Dome project, expanding its copper exploration footprint in Zambia.

MustGrow Biologics Corp. (TSX-V:MGRO, OTCQB:MGROF) reported record Q1 revenue of $3.8 million and a gross profit of $541,000, driven by its regenerative agriculture solutions.

Thor Explorations Ltd (TSX-V:THX, AIM:THX, OTC:THXPF) posted Q1 revenue of US$64 million from gold sales, supported by strong pricing and cost control.

ANGLE PLC (AIM:AGL, OTCQX:ANPCY) said it is in talks for multiple large-scale commercial deals in the liquid biopsy market, though timing remains uncertain.

Genflow Biosciences PLC (LSE:GENF, OTCQB:GENFF) signed a long-term agreement with CER Groupe to formalize and expand their collaboration on gene therapy programs targeting ageing.

American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) installed groundwater monitoring wells at its Cowboy State Mine, advancing permitting for its major U.S. rare earths project.

3:15pm: Stocks on the move

Joby Aviation Inc (NYSE:JOBY) shares surged nearly 30% after securing a $250 million investment from Toyota to advance its electric air taxi certification and production.

GameStop Corp (NYSE:GME) disclosed it purchased 4,710 Bitcoin worth about $513 million, marking a significant move into cryptocurrency.

Abercrombie & Fitch (NYSE:ANF) shares rose after reporting record Q1 sales of $1.1 billion, driven by a 22% surge in Hollister brand revenue.

Candel Therapeutics Inc (NASDAQ:CADL) received RMAT designation from the FDA for its lead cancer immunotherapy, CAN-2409, targeting prostate cancer.

Okta Inc (NASDAQ:OKTA) beat Q1 earnings estimates but shares fell over 13% due to cautious forward guidance amid macroeconomic uncertainty.

2:33pm: Fed favors ‘cautious approach’

Federal Reserve officials agreed that a cautious approach to interest rate policy remains appropriate amid significant uncertainty surrounding the economic outlook, according to minutes from the central bank’s latest policy meeting.

The minutes, released Tuesday, indicated that Fed policymakers see the institution as "well positioned to wait for clarity on the outlook" before making further moves. Officials noted the potential for “difficult tradeoffs” ahead as they balance inflation risks with signs of slowing economic momentum.

Adding to the uncertainty, Fed staff assessed the chances of a recession as “almost as likely” as their baseline forecast, underscoring concerns that economic conditions may deteriorate.

Policymakers also flagged the impact of international trade tensions, with the minutes stating that tariffs imposed were “much larger” and “broader than expected,” suggesting a potential drag on growth and inflation dynamics.

1:55pm: Don't forget about Salesforce

Salesforce is expected to report fiscal first-quarter revenue in line with guidance, but Jefferies analysts caution that investors should anticipate limited upside on remaining performance obligations (CRPO) and a conservative outlook from management.

Jefferies forecasts Q1 revenue to fall within the guided $9.71 billion to $9.76 billion range, though they see little room for CRPO or total revenue to exceed consensus expectations of 10% and 6.8% growth, respectively.

The firm anticipates that Salesforce will maintain its fiscal 2026 guidance but is unlikely to raise it, even if Q1 results beat estimates.

1:10pm: Nvidia expectations build

Nvidia may issue a softer-than-expected sales outlook for its July quarter due to weakened demand from China, a result of U.S. export restrictions on its H20 chip, according to Bank of America.

The bank warned that fiscal second-quarter revenue guidance could drop to $41 billion, well below the consensus estimate of $46 billion.

Analysts estimate a $4 billion to $5 billion revenue headwind in Q2 alone, with potential for up to a $7 billion impact when applying Nvidia’s projected $15 billion annual China sales loss.

While the company is still expected to post a modest beat on its Q1 revenue guidance of $43 billion, gross margins could fall short due to a $5.5 billion inventory write-off tied to the chip ban, potentially lowering margins from 71% to 58%.

Analysts forecast fiscal 2026 EPS of $3.90 to $4, about 10% below consensus, due to the projected $15 billion China sales shortfall. 

12:30pm: Muted trading action

Stocks were drifting lower by midday as Wall Street kept things cautious ahead of some potentially market-moving news. Investors are bracing for the release of the Federal Reserve’s meeting minutes later today, along with earnings from Nvidia, one of the most closely watched companies in tech. By 12:30 PM ET, the Dow was down 0.3%, the S&P 500 had dipped 0.2%, and the Nasdaq slipped just 0.1%.

Trading volume has been light, with many investors staying on the sidelines as they wait to see whether Nvidia delivers another strong quarter. Given the company’s massive influence on the tech sector, its results could ripple across the broader market.

While the S&P 500 is still hovering within 4% of its all-time high, today's action has been muted. Sector-wise, homebuilder stocks are feeling the pressure as mortgage rates rise, while some retail stocks are making bigger moves on their earnings updates. Treasury yields have edged up a bit, and the dollar is showing strength against major global currencies.

11:35am: Markets take a breather

The stock market rally is "taking a breather" ahead of Nvidia's results later today, according to Axel Rudolph, Senior Technical Analyst at online trading platform IG.  

"Stock indices and bond yields lack direction ahead of Nvidia's after-hours Q1 earnings, pausing this week's ascents," Rudolph commented. 

"US mortgage applications are falling for a second week in a row as benchmark 30-year fixed mortgage rates continue to climb to their highest level in four months, close to the 7% mark. Meanwhile the greenback continues to edge higher."

10:40am: Stocks ease lower

Stocks slipped out of the gate on Wednesday, with all three major indices edging lower in early trading as investors adopt a cautious stance ahead of key earnings and economic updates.

The Dow Jones dipped 92 points, or 0.2%, to 42,252, while the S&P 500 also shed 0.2%, down 13 points to 5,908. The tech-heavy Nasdaq dropped 44 points, or 0.2%, to 19,155.

All eyes are on Nvidia, the AI heavyweight whose first-quarter earnings report is due after the closing bell. The chipmaker has become a key barometer for market sentiment around artificial intelligence — a theme that’s helped fuel this year’s tech rally. With expectations running high, investors are hoping Nvidia can beat lofty sales and profit targets and, more importantly, issue an upbeat forecast despite mounting concerns over U.S.-China trade tensions.

Meanwhile, the Federal Reserve will release minutes from its early-May policy meeting later today, offering more color on where central bankers stand on interest rates and the broader economic outlook. Traders will be combing through the report for any hints of concern over President Trump’s latest trade measures, which have added another layer of uncertainty to the global growth picture.

9:45am: Markets lose momentum

The major Wall Street stock indexes all started higher but soon lost momentum.

After starting 0.2-0.3% higher, but within half an hour of the opening bell the three major indices had all slipped marginally into the red.

Nvidia was a key driver of this as the $3.3 trillion group's shares dipped only 0.2%, followed by Tesla and Apple. 

7:20am: Futures green

New York stock futures turned from red to green as US investors awoke on Wednesday and assessed the market ahead of keenly awaited earnings from Nvidia this evening. 

In sync with subdued blue-chip shares in Europe, S&P 500 and Dow Jones futures were indicating around a 0.3% decline but quickly flipped into positive territory with around two hours before the opening bell. 

S&P futures were still only indicating a 0.1% gain, with those for the Dow only just above flat, while Nasdaq 100 futures were up 0.25%. 

It followed big rallies the day before, on the back of Donald Trump allowing an extra six weeks for EU trade talks. 

On Wall Street, the Nasdaq leapt 2.5%, the S&P 2.05% and the Dow 1.8%.

The basis for the fluctuation in sentiment on Wednesday was not exactly clear, with no social media posts from Donald Trump and no significant data apart from MBA mortgage numbers.

Macy's earnings and revenues both beat expectations marginally but full-year guidance was cut.

Market analyst Kenny Polcari at Slatestone Waelath said, "you should not be surprised after yesterday's big moves".

He said he did not believe that any of the ecocomic data today will drive the market, "it will be all about the latest drama out of DC. The trade staff and the commentary coming out of the Senate concerning the Big Beautiful Bill and all that is wrong with it."

The big event, he said, is happening after the bell, as Nvidia boss Jensen Huang takes the stage to announce the latest results. 

"If Jensen was going to disappoint even a little bit – we would know by now…they would have ‘pre-announced’ something, they would have hinted at a slowdown or an issue with their Blackwell (or other) chip, they would have suggested that demand is ‘soft’ – they would have said something," said Polcari, noting that the options market is pricing in an 8-10% move in either direction depending on what Huang says.