Wall Street saw a slight rebound on Wednesday as the Dow, S&P 500, and Nasdaq all experienced gains, pausing a recent streak of losses. Investors are keenly awaiting earnings reports from Nvidia (NVDA), which are expected to significantly influence the direction of the AI-driven market.
The Nasdaq Composite (^IXIC) led the recovery with a 0.6% increase, while the S&P 500 (^GSPC) rose by 0.4%. The Dow Jones Industrial Average (^DJI) saw a smaller gain of approximately 0.1% after fluctuating throughout the day. These gains come after four consecutive days of losses, largely driven by the tech sector's downturn.
Ahead of its earnings release, Nvidia's stock closed up by about 2.8% on Wednesday. Bitcoin (BTC-USD), however, continued its decline, falling below $90,000 and approaching its lowest levels since April.
Nvidia Earnings: A Pivotal Moment
Investors are heavily focused on Nvidia's third-quarter earnings, anticipating a potential swing of up to 7% in either direction for the stock. The results are seen as a critical test for the S&P 500's strong performance this year, which has been fueled by optimism surrounding AI-driven growth.
AI Spending Concerns
Concerns about the substantial investments Big Tech companies are making in AI infrastructure have contributed to recent market declines. High-profile investors are reportedly reducing their holdings amid growing unease that companies like Amazon (AMZN) are increasing borrowing to fund AI initiatives at a time when the Federal Reserve is expected to slow down interest rate cuts.
Federal Reserve Minutes Analyzed
The minutes from the Federal Reserve's meeting were closely scrutinized for insights into the economy and future monetary policy. The minutes revealed ongoing divisions regarding potential interest rate cuts in December, a debate that has been publicly visible in recent weeks.
Investors' assessment of the Fed's upcoming actions will likely play a significant role in shaping market sentiment in the near future.