US stocks moved lower early Wednesday as investors cautiously counted down to Nvidia's ( NVDA ) earnings report , seen as a crucial test of hopes for Big Tech amid tariff uncertainty.
The Dow Jones Industrial Average ( ^DJI ) fell around 0.1% on the heels of Tuesday's tariff reprieve-driven rebound . The S&P 500 ( ^GSPC ) and tech-heavy Nasdaq Composite ( ^IXIC ) both also declined more than 0.1%.
Nvidia's results are looming large as Wall Street looks for clues to AI demand, which has helped keep alive bullishness for stocks. Hopes are that the chipmaker will confirm that megacap techs can still drive gains even as trade-war fears prey on markets.
The AI bellwether is expected to report first quarter earnings after the bell on Wednesday. If it beats lofty targets for sales and profit — and crucially, delivers an upbeat outlook amid anti-China trade measures — strategists expect a broader rally in stocks.
Read more: The latest updates on Nvidia's earnings report
Before the bell, Macy's ( M ) posted narrow first quarter revenue and earnings beats , but it revised its 2025 outlook with tariffs uncertainty a factor. Meanwhile, Abercrombie & Fitch ( ANF ) shares soared over 24% in early trade as investors welcomed its quarterly report .
On the economic front, minutes from the Federal Reserve's meeting earlier in May are set for release later in the day. Investors are looking for additional insight into how policymakers view the economy, with the impact of President Trump's trade policy in high focus.
Read more: The latest on Trump's tariffs
Fresh data on Tuesday showed that US consumer confidence rebounded in May as Americans reacted to Trump t hawing trade tensions with China earlier in the month. The stock market, meanwhile, delivered its early verdict on Trump delaying planned 50% tariffs on European Union goods.
Nations are now racing to cut deals with the Trump administration to avoid the planned US tariff hikes, with India reportedly the latest to offer to lower its own tariffs on some American products.
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