U.S. Stocks Close in Red Ahead of Nvidia Earnings
(MENAFN) On Wednesday, U.S. stock markets closed lower as investors held their breath for Nvidia’s eagerly awaited earnings report, released after trading hours.
The Dow Jones Industrial Average dropped 244.95 points, or 0.58%, settling at 42,098.7. The S&P 500 declined by 32.99 points, or 0.56%, ending at 5,888.55. Meanwhile, the Nasdaq Composite slipped 98.23 points, or 0.51%, to finish at 19,100.94.
Every one of the 11 main sectors within the S&P 500 posted losses, with utilities and materials suffering the biggest setbacks, falling 1.44% and 1.27%, respectively. Real estate saw the mildest dip, down just 0.01%.
Minutes from the Federal Reserve’s May meeting, published Wednesday, revealed lingering uncertainty among policymakers regarding fiscal policy direction and trade tensions. While the Fed held interest rates steady, officials emphasized that economic growth remains solid and the labor market is "broadly balanced," though they acknowledged ongoing risks of economic weakening.
The statement read, "In considering the outlook for monetary policy, participants agreed that with economic growth and the labor market still solid and current monetary policy moderately restrictive, the (Federal Open Market) Committee was well positioned to wait for more clarity on the outlooks for inflation and economic activity."
Nvidia, now the second-largest company globally by market capitalization, stayed in the spotlight. Interestingly, its stock price has fallen following its past three earnings announcements, despite consistently exceeding forecasts.
In other tech moves, Broadcom’s shares rose 1.6%, Apple and Meta posted slight gains, whereas Microsoft, Amazon, and Alphabet saw declines. Tesla’s stock hit its highest level since early February during Tuesday’s trading but slipped 1.65% on Wednesday.
Within retail, Abercrombie & Fitch skyrocketed 14.69% after reporting strong results. Macy’s ended the day down 0.33% following a volatile session; despite delivering solid performance, the retailer lowered its full-year profit outlook, highlighting growing pressure from rising tariffs. Capri Holdings, owner of brands like Michael Kors and Jimmy Choo, climbed 2.94%.
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