US stocks fall as traders count down to Nvidia earnings

• US stocks traded mostly flat as investors eyed Nvidia’s earnings report, which is due after the close.

• Markets are eyeing further earnings growth, but there is also caution about chip delays.

• Traders are also watching comments from the Atlanta Fed president for more clues about rate cuts.

US stocks fell on Wednesday as traders awaited Nvidia’s upcoming earnings report. All three benchmarks slipped slightly into the red, while Nvidia shares traded 1% higher.

Expectations are high for the chipmaker, with investors looking for another earnings beat and solid indications of how the massive investment in AI is working out for Nvidia’s customers.

The company’s results have the potential to fuel a major market shift, with Goldman Sachs noting on Tuesday that the report could trigger a $300 billion swing in Nvidia shares, based on this week’s option prices.

The stock is already trading near record highs, adding to the risk that a small miss on expectations could trigger a big move down.

“For equities, all eyes are now on Nvidia’s earnings report tonight, which has contributed to significant moves in recent quarters,” Deutsche Bank strategists said in a note Wednesday morning. “Keep in mind that Nvidia’s stock price is already up +159% on a YTD basis, making it the best performer in the entire S&P 500, and up more than +1000% from its October 2022 low.”

Traders are also awaiting comments from Atlanta Fed President Raphael Bostic, who is scheduled to speak after the closing bell. His remarks could provide more guidance on the path of Fed rate cuts this year, with investors pricing in cuts of up to 150 basis points by the end of the year, according to CME’s FedWatch tool.

Here’s where U.S. indexes stood shortly after Monday’s opening bell:

Here’s what’s happening today:

In commodities, bonds and crypto:

• West Texas Intermediate crude fell 1.02 percent to $74.75 a barrel. Brent crude, the international benchmark, fell 0.92 percent to $77.93 a barrel.

• Gold fell 0.9% to $2,502.25 an ounce.

• The 10-year Treasury yield was flat at 3.825%.

• Bitcoin fell 4% to $59,827.

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