Indexes fall as investors wait for Nvidia’s earnings report

• US stock markets fell in anticipation of Nvidia’s first-quarter earnings report after the close of trading.

• Investors also heard comments from Fed officials who suggested that interest rate cuts were not imminent.

• The Fed will release the minutes of its latest policy meeting on Wednesday afternoon.

U.S. stocks fell on Wednesday as investors looked ahead to Nvidia’s long-awaited first-quarter earnings report and took in the latest comments from Federal Reserve speakers.

All three benchmark indexes fell while bond yields rose. The 10-year Treasury yield rose three basis points to 4.451%.

Nvidia is on board to announce financial results after the closing bell. Wall Street is expecting another strong quarter from the chipmaker, with analysts expecting the company to post revenue of $24.6 billion in the first three months of the year, according to Bloomberg data.

Wall Street expects earnings of $5.34 per share, expecting the report to show a surge in demand for the company’s artificial intelligence chips. In 2024, the company’s shares will rise by more than 90% so far.

Investors are also listening to comments from several Fed officials who reiterated that rate cuts are unlikely to happen until there is more progress on inflation.

“I think the data was very mixed,” Boston Fed President Susan Collins said Tuesday night on inflation. “It’s going to take a lot longer than I previously thought.”

Cleveland Fed President Loretta Mester added that she would prefer to see “a few more months” of inflation data cooling before the Fed starts cutting interest rates.

Markets have been dialing back their expectations for Fed rate cuts throughout the year. According to CME’s FedWatch tool, investors see a nearly 100% chance the Fed will keep interest rates on hold at its June policy meeting, with investors anticipating one or two cuts by the end of this year.

Here’s where the U.S. indexes stood shortly after the opening bell at 9:30 a.m. on Wednesday:

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Here’s what else happened today:

For commodities, bonds and cryptocurrencies:

• West Texas Intermediate crude oil fell 1.14% to $77.76 a barrel. Brent crude, the international benchmark, fell 1.13% to $81.94 a barrel.

• Gold fell 0.52% to $2,409.48 an ounce.

• The 10-year Treasury yield rose three basis points to 4.451%.

• Bitcoin fell 1.88% to $69,784.

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