Dow slips as Nvidia rally lifts Nasdaq ahead of crucial earnings

US stocks moved higher on Wednesday as investors piled back into semiconductor shares ahead of highly anticipated quarterly results from chip giant Nvidia, while easing Treasury yields and lower oil prices helped stabilize broader market sentiment.

The S&P 500 rose about 0.26%, while the Nasdaq Composite gained roughly 0.61% after both indexes suffered three consecutive losing sessions earlier this week.

The Dow Jones Industrial Average on the other hand fell 75 points or 0.15%.

Much of the market’s attention remained focused on Nvidia, which is scheduled to release its fiscal first-quarter earnings after the closing bell.

Shares of the AI chipmaker rose about 0.71% in trading.

Investors are expected to closely examine Nvidia’s results for evidence that artificial intelligence-related spending remains strong enough to support elevated valuations across the semiconductor and broader technology sectors.

Chip stocks rebound ahead of Nvidia report

The broader semiconductor sector also advanced Wednesday as investors rotated back into AI-linked infrastructure stocks following several days of volatility driven by rising bond yields.

Shares of Marvell Technology climbed roughly 7.4%, while Intel gained nearly 7.5% and Micron Technology added more than 2.5%.

The iShares Semiconductor ETF also rose more than 2%.

Analysts said Nvidia’s earnings report could have implications far beyond the company itself, particularly as investors debate whether AI-related infrastructure spending can continue supporting the sector’s rapid gains.

Treasury yields and inflation concerns remain central

Despite Wednesday’s rebound in futures, investors remained cautious as Treasury yields stayed near multi-year highs following recent inflation data and rising oil prices tied to Middle East tensions.

The benchmark 10-year Treasury yield, which reached 4.687% on Tuesday — its highest level since January 2025 — eased Wednesday morning modestly to around 4.64%. 

Meanwhile, the 30-year Treasury yield briefly climbed above 5.19% earlier this week, marking its highest level in nearly 19 years.

Markets have increasingly begun pricing in the possibility that the Federal Reserve may need to raise interest rates again later this year if inflation pressures persist.

According to CME FedWatch data, traders now see more than a 40% probability of a 25-basis-point rate increase in December.

Investors are also awaiting minutes from the Federal Reserve’s latest policy meeting later Wednesday for additional clues about policymakers’ views on inflation and future interest-rate decisions.

Oil prices ease as markets monitor Iran tensions

Oil prices pulled back on Wednesday after recent sharp gains linked to the conflict involving Iran and concerns over disruptions to Middle Eastern energy supplies.

West Texas Intermediate crude futures fell roughly 2% to trade near $101 per barrel, while Brent crude declined about 3% to around $108 per barrel.

The decline followed comments from President Donald Trump suggesting the conflict with Iran could end “very quickly,” although investors remained cautious about the broader geopolitical situation.

Outside the semiconductor sector, several retailers also moved on earnings news.

Shares of TJX Companies rose about 5.3% after the off-price retailer raised its annual comparable sales and profit forecasts.

Meanwhile, shares of Lowe's edged 3.56% lower after the company reaffirmed its annual guidance.

Cava's shares surged 13% after the company's earnings beat market expectations.

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