U.S. stocks edged slightly lower Wednesday, slipping back from record highs, ahead of the release of minutes from the latest Federal Reserve meeting as well as key earnings from market darling Nvidia.
At 05:55 ET (09:55 GMT), Dow Jones Industrial Average slipped 33 points, or 0.1%, S&P 500 fell 6 points, or 0.1%, and NASDAQ Composite fell 25 points, or 0.1%.
Wall Street indexes eked out gains on Tuesday, boosted chiefly by the technology sector, with the S&P 500 and the NASDAQ Composite closing at record highs.
Nvidia earnings loom large Wall street traded lower Wednesday, with the S&P 500 and the NASDAQ Composite falling from the previous session's record closing highs, as investors positioned for hotly anticipated earnings from Nvidia (NASDAQ:NVDA).
The chipmaker is widely considered as a bellwether for the rapidly-growing artificial intelligence industry, and is expected to report exponential growth in earnings on the back of demand from the industry.
Nvidia currently makes the most advanced AI chips available in the market, and is expected to have benefited substantially from major tech companies racing to further their AI plans.
Anticipation of Nvidia's earnings saw investors buy further into technology stocks.
Fed minutes due as officials stick to cautious stance on rates The Fed minutes are also due during later in Wednesday’s session, and come following a string of cautious signals from members of the central bank.
The Fed kept rates steady during the last meeting and warned that inflation was turning sticky. But it also still mentioned the possibility of interest rate cuts this year, a statement that markets had clung to.
Still, several Fed officials cautioned this week that the central bank needed much more confidence that inflation was easing, before it could begin trimming rates. But they also downplayed speculation that the bank would increase rates further.
Beyond the minutes, more Fed officials are also set to speak in the coming days.
Quarterly earnings continue In the corporate sector, Nvidia’s numbers will be the highlight, but there are more quarterly earnings to digest.
Target (NYSE:TGT) stock fell x.x % on the back of its latest quarterly earnings, which saw the retailer miss profit expectations on the back of weak discretionary spending.
Urban Outfitters (NASDAQ:URBN) stock rose over 6% after the clothing retailer beat expectations on the top and bottom line, while TJX Companies (NYSE:TJX) rose 2% after the TJ Maxx parent posted better-than-expected first-quarter results and raised its annual profit forecast.
Toll Brothers (NYSE:TOL) gained 1% after the home builder raised its full-year delivery guidance, while Lululemon Athletica (NASDAQ:LULU) stock dropped 3.9% after the athletic apparel retailer announced the departure of Chief Product Officer Sun Choe.
Crude slips after US inventories build Crude prices fell Wednesday, retreating for the third straight session on U.S. interest rates jitters as well as an unexpected build in U.S. inventories.
By 09:35 ET, the U.S. crude futures traded 1% lower at $77.91 a barrel, while the Brent contract dropped 1% to $82.11 per barrel.
Data from the American Petroleum Institute showed on Tuesday that U.S. oil inventories unexpectedly grew by 2.5 million barrels last week, raising some concerns over sluggish U.S. oil demand, with the upcoming Memorial Day holiday marking the traditional start of the travel-heavy summer season.
