U.S. stocks fell from record highs on Wednesday as investors awaited crucial earnings from AI whistleblower Nvidia ( NVDA ) and more clues to the Federal Reserve’s thoughts on rate cuts.
S&P 500 futures (ES=F) fell about 0.1% to hit a new record high. Dow Jones Industrial Average futures (YM=F) also fell 0.1%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) flatlined.
Shares managed to hit new all-time highs this week as markets waited to find out whether Nvidia will deliver on sky-high earnings expectations. Investors are bracing for a big move in the chipmaker’s stock price and other potential AI plays after its first-quarter results, which will be announced after the bell. It all adds up to a big test for the broader market as a whole.
Investors also get a second reality check in the form of minutes from the Fed’s latest meeting. Eyes are on any deviation from policymakers’ repeated message that they want to be more confident of a cooling of inflation before they start cutting rates. But ahead of the release later Wednesday, some nerves were frayed by British inflation data that suggested price pressures elsewhere are proving difficult to tamp down.
Read more: What influence does the labor market have on inflation?
At the same time, Target’s (TGT) quarterly results fueled concerns about the state of the economy. The retail giant’s revenues lagged as consumers refrained from non-essential purchases, citing inflation. Shares fell 8% in pre-market trading.
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