Stocks are little changed as Wall Street awaits big Nvidia earnings: Live updates

U.S. stocks traded near the flatline Wednesday as investors looked ahead to the widely-anticipated release of Nvidia’s latest earnings report.

The S&P 500 and the Dow Jones Industrial Average inched down 0.1% each. The Nasdaq Composite added less than 0.1%.

Target shares fell more than 7% on weaker-than-expected earnings, with management citing weaker spending trends in discretionary categories. The retailer’s troubles raised broader concerns about the health of the consumer.

Nvidia shares pulled back 0.7% Wednesday ahead of its quarterly earnings results after the bell. Analysts are expecting another strong quarter from the chipmaker. LSEG data shows consensus estimates call for earnings per share and revenue to have risen 400% and 240% year on year.

The chipmaker’s earnings announcement “has become one of the most important events on the macro calendar,” according to Deutsche Bank strategist Henry Allen.

Although the market has been focused on AI as a key driver of the rally, optimism for rate cuts from the Federal Reserve this year suggests the market could bounce back even in the case Nvidia’s earnings disappoint, said Tim Courtney, Exencial Wealth Advisors chief investment officer. “I do think there is enough strength out there simply because of the market’s expectation for soft landing now.

Allen noted that the day after Nvidia’s last earnings report in February, the S&P 500 jumped more than 2% the following day, notching its best daily results in over a year.

Investors will closely watch the report for clues on whether this year’s tech rally can continue. The tech-heavy Nasdaq Composite has jumped 12% to record highs year to date.

Existing home sales unexpectedly fell in April, indicating a potential cooldown in the housing market. Economists polled by Dow Jones had expected home sales to rise during the month.

Traders will also watch out for minutes from the latest Federal Open Market Committee meeting.

The S&P 500 and Nasdaq are coming off of record setting sessions, while the Dow rose slightly.