U.S. Stocks Fall Ahead of Nvidia Earnings on Fed, Trade Concerns

U.S. stock markets closed lower on Wednesday amid cautious trading ahead of Nvidia's highly anticipated first-quarter earnings report, which is expected to significantly impact investor sentiment on artificial intelligence demand. The Dow, S&P 500, and Nasdaq all declined modestly, reflecting investor reluctance to make major moves pending Nvidia's results and the Federal Reserve's minutes that indicated a wait-and-see approach to monetary policy. Nvidia shares dipped slightly prior to the earnings release, contributing to broader market weakness, while concerns over trade policies, including President Trump's tariff threats and recent regulatory actions against U.S. semiconductor firms selling to China, added to market uncertainty. The semiconductor sector, closely watched for its earnings, was volatile, with defensive options contracts attracting attention. Overseas, Asian markets showed mixed results, and European markets declined, influenced by similar global economic concerns. Overall, Nvidia's earnings are viewed as pivotal not only for the company but for the broader market's direction amid ongoing geopolitical and economic uncertainties.