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US stocks moved lower early Wednesday as investors cautiously counted down to Nvidia's (NVDA) earnings report, seen as a crucial test of hopes for Big Tech amid tariff uncertainty.
The Dow Jones Industrial Average (^DJI) fell around 0.2% on the heels of Tuesday's tariff reprieve-driven rebound. The S&P 500 (^GSPC) declined 0.1% while the tech-heavy Nasdaq Composite (^IXIC) dropped just below the flat line.
Nvidia's results are looming large as Wall Street looks for clues to AI demand, which has helped keep alive bullishness for stocks. Hopes are that the chipmaker will confirm that megacap techs can still drive gains even as trade-war fears prey on markets.
The AI bellwether is expected to report first quarter earnings after the bell on Wednesday. If it beats lofty targets for sales and profit — and crucially, delivers an upbeat outlook amid anti-China trade measures — strategists expect a broader rally in stocks.
Read more: The latest updates on Nvidia's earnings report
Before the bell, Macy's (M) posted narrow first quarter revenue and earnings beats, but it revised its 2025 outlook with tariff uncertainty as a factor. Meanwhile, Abercrombie & Fitch (ANF) shares soared over 24% in early trade as investors welcomed its quarterly report.
On the economic front, minutes from the Federal Reserve's meeting earlier in May are set for release later in the day. Investors are looking for additional insight into how policymakers view the economy, with the impact of President Trump's trade policy in high focus.
Read more: The latest on Trump's tariffs
Fresh data on Tuesday showed that US consumer confidence rebounded in May as Americans reacted to Trump thawing trade tensions with China earlier in the month. The stock market, meanwhile, delivered its early verdict on Trump delaying planned 50% tariffs on European Union goods.
Nations are now racing to cut deals with the Trump administration to avoid the planned US tariff hikes, with India reportedly the latest to offer to lower its own tariffs on some American products.
LIVE 15 updates
Buying the dip is having its best day in more than 30 years
Investors have been instantly rewarded for buying the dip in 2025 at a level not seen in more than 30 years.
Research from Bespoke Investment Group shows that the S&P 500 is rising an average of 0.36% in the next trading session following a down for the index. In Bespoke's data back to 1993, the only other time stocks rebounded even close to as aggressively was the 0.32% rise seen after down days during 2020.
As Bespoke wrote on X, the data is proof that the "buy the dip" mentality has been at the forefront of the market narrative in 2025. This played out as recently as Tuesday when the S&P 500 rose more than 2% in the next session after falling 0.7% to end last week's trading before the holiday weekend.
Oil jumps as supply risks outweigh looming OPEC+ output decision
Crude oil prices rose on Wednesday as concerns over supply disruptions outweighed a looming decision over the possibility of increased production from OPEC+ in July.
West Texas Intermediate (CL=F) futures rallied 2% to hover above $62 per barrel. Brent crude (BZ=F), the international benchmark, also traded above $64 per barrel.
Supply concerns intensified after peace talks between Russia and Ukraine stalled, raising the likelihood of new sanctions on Moscow that could involve restricting Russian oil exports.
Meanwhile, the US granted Chevron (CVX) a new license to maintain minimal operations in Venezuela. However, the company remains barred from exporting oil or expanding its operations in the sanctioned country.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) ratified production quotas for 2025 and 2026 ahead of a key meeting this Saturday, where the group will decide whether to raise output in July following increases already set for May and June.
BOK Financial senior vice president Dennis Kissler wrote in a note that “most analysts feel another hike in output is likely, which will be a fundamental headwind for crude.”
Utilities lead sectors lower
The Utilities (XLU) sector fell more than 1.3%, leading the losses among the 11 S&P 500 (^GSPC) sectors.
Utilities are considered one of the more interest rate-sensitive sectors and have lagged amid the recent rise in Treasury yields. The 10-year Treasury yield (^TNX) was up about 6 basis points and hovered just below 4.5% on Wednesday while the 30-year Treasury yield (^TYX) once again crossed above 5%.
The interest rate-sensitive Russell 2000 Index (^RUT) was also among the laggards on Thursday, falling about 0.8%, far outpacing the 0.2% loss of the S&P 500.
GameStop stock slides as company announces $500 million bitcoin purchase
Yahoo Finance's Ines Ferre reports:
Nvidia earnings topped forecasts by 10% over past 2 years, double the S&P 500 average
Nvidia's (NVDA) earnings and revenue beat Wall Street's expectations nearly every quarter over the past two years.
Over the past eight quarters, Nvidia's earnings per share exceeded Wall Street's projections by an average of 9.8%. Over that same time frame, Nvidia's quarterly revenue beat the Street by an average of 8.9%.
Meanwhile, S&P 500 companies reported earnings and sales roughly 5% and 1.3% above Wall Street's expectations in that time frame, according to Bloomberg data.
Only once in that period — during the second quarter of its fiscal year 2025 — did Nvidia's earnings miss forecasts. Its revenue has exceeded forecasts during each of the past eight quarters.
Stocks rise in countdown to Nvidia earnings
US stocks moved higher early on Wednesday as investors awaited a critical earnings report from AI bellwether Nvidia (NVDA).
The Dow Jones Industrial Average (^DJI) rose around 0.1% on the heels of Tuesday's tariff reprieve-driven rebound. The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) each inched up about 0.2%.
Railroad giant CEO: The economy isn't booming, but it's not in a recession
Yahoo Finance's Brian Sozzi reports:
Trending stocks ahead of the opening bell: Abercrombie, Trump Media, Okta, and more
Here's a look at some top movers trending ahead of the opening bell:
Abercrombie & Fitch (ANF) stock rocketed 27% higher in premarket trading after the retailer reported better-than-expected first quarter results and forecast strong annual sales. Adjusted earnings came in at $1.59 per share, beating expectations for $1.39 per share, as the company's Hollister brand has been resonating more with younger consumers, Reuters reported.
Trump Media & Technology Group (DJT) shares rose 2% after unveiling plans Tuesday to raise $2.5 billion to create a bitcoin (BTC-USD) treasury. The move will place bitcoin directly on the balance sheet of Trump Media, which owns the Truth Social platform. Bitcoin is hovering near all-time highs.
Okta (OKTA) stock tumbled 12% despite reporting better-than-expected earnings on Wednesday. The identity software company announced it would take a "prudent approach" to its financial outlook and reiterated its guidance, alluding to economic uncertainty.
Macy's (M) stock rose 4% after surpassing Wall Street's earnings expectations. But the company still faces questions about its future as management aims to turn the retailer around.
Joby Aviation (JOBY) shares surged 11% after Toyota (TM) invested $250 million in the electric vertical take-off and landing (eVTOL) aircraft maker, becoming its largest shareholder. Joby expects a second tranche of funding from Toyota, completing its $500 million commitment, will land later this year.
Nvidia (NVDA) stock traded slightly higher on Wednesday morning ahead of its earnings report after the closing bell, considered to be the most highly anticipated of the season. You can follow along with our live updates of Nvidia's results here.
Check out more trending tickers on the Yahoo Finance platform here.
GameStop stock rises after $513M bitcoin buy
GameStop (GME) stock rose early Wednesday as the company revealed a sizable bitcoin (BTC-USD) purchase.
As the report notes, the bitcoin play is the latest unorthodox move to draw investor interest to a brick-and-mortar video game seller that vaulted into the public consciousness during the 2021 meme-stock craze. GameStop's stock has been rallying in recent days amid bitcoin's surge to new highs.
GameStop's reveal comes a day after President Trump's media company, Trump Media & Technology Group (DJT), said it is looking to raise some $2.5 billion to buy bitcoin.
Macy's stock pops after earnings beat
Macy's (M) stock gained 3% in premarket trading after the beleaguered retailer cleared a low bar for earnings expectations set by Wall Street.
Revenue fell 5.1% compared to the same period last year, and adjusted earnings per share dropped 40.7%, but both measures topped analyst estimates for the quarter.
Yahoo Finance's Brooke DiPalma reports:
Trade truces are undoubtedly bullish — but mask unresolved issues
Yahoo Finance's Hamza Shaban reports:
Read more here from today's Morning Brief.
Good morning. Here's what's happening today.
The path of least resistance for stocks is to move higher: Barclays
Bloomberg reports:
Okta stock falls despite beating Q1 earnings and revenue estimates
Okta (OKTA) stock dropped by 12% on Wednesday in premarket trading after the tech company reported its first-quarter earnings the day before.
Despite beating Q1 earnings and revenue estimates, the company reiterated its full-year revenue outlook, factoring in a potential risk related to the uncertain economic environment.
CEO, Todd McKinnon said: "Okta had a solid start to FY26 highlighted by record operating profit and another quarter of robust free cash flow."
"The world's biggest organizations continue to turn to Okta to solve identity security across their workforces, customers, and AI use cases."
McKinnon explained that they would continue a "prudent approach to forward guidance… factoring in potential risks related to the uncertain economic environment for the remainder of FY26."
Oil rises with OPEC+ committee meeting imminent
Oil rose today, with an OPEC+ meeting on the horizon to address potential supply issues. Meanwhile, the US is entering the early stages of prospective sanctions on Russia.
Bloomberg reports:
