U.S. stocks were mixed in early trading Wednesday ahead of a highly anticipated earnings update from computer chip giant Nvidia that may provide insights into the current state and future of artificial intelligence.
The S&P 500 was up less than 0.1%. The benchmark index remains near its record high set earlier this month. The Dow Jones Industrial Average rose 87 points, or 0.2%, as of 9:56 a.m. Eastern time. The Nasdaq composite was down 0.2%.
Investors see Nvidia’s quarterly report, coming after the bell, as a barometer for the strength of the boom in artificial intelligence because the company makes most of the chips that power the technology. Its heavy weighting also gives Nvidia outsized influence as a bellwether for the broader market. Its shares were down 1.1%.
Cracker Barrel shares rose 5.2% after it scrapped plans to change its logo following an uproar on social media that even drew a comment from President Donald Trump.
Several companies reported quarterly results. Kohl’s vaulted 19.7% after the department store chain’s latest quarterly results topped analysts’ forecasts. J.M. Smucker slid 6.1% after the jelly and jam maker reported fiscal first-quarter results that fell short of Wall Street’s estimates.
Treasury yields were mixed in the bond market. The yield on the 10-year Treasury rose to 4.27% from 4.26% late Tuesday. The two-year Treasury yield, which more closely tracks expectations for Federal Reserve action, slipped to 3.65% from 3.68%.
Crude oil prices rose. European markets were mostly lower and Asian markets closed mixed overnight.
Trading on Wall Street is off to an uneven start this week following big gains last week on hopes for interest rate cuts from the Fed.
Markets have been subdued after Trump escalated his fight with the central bank by trying to fire Federal Reserve Governor Lisa Cook. Cook's lawyer said she'll sue Trump’s administration to try to stop him.
Trump has been feuding with the central bank over its cautious interest rate policy. The Fed has held rates steady since late 2024 over worries that Trump's unpredictable tariff policies will reignite inflation. Trump has also threatened to fire Fed Chair Jerome Powell, often taunting him with name-calling. Still, he is only one of 12 votes that decides interest rate policy.
Traders are still betting the Fed will trim its benchmark interest rate at its next meeting in September. Traders see an 90.3% chance that the central bank will cut the rate by a quarter of a percentage point, according to data from CME Group.
The Federal Reserve cut its benchmark interest rate in late 2024 after spending the last several years fighting rising inflation by raising rates. It managed to mostly tame inflation and avoided having those higher rates stall economic growth, thanks largely to strong consumer spending and a resilient job market.
The Fed hit the pause button heading into 2025 over concerns that higher tariffs imposed by Trump could reignite inflation. Lower interest rates make borrowing easier, helping to spur more investment and spending, but that could also potentially fuel inflation. However, concerns are deepening over the jobs market.
Friday will bring another update on inflation: the U.S. personal consumption expenditures index. Economists expect it to show that inflation remained at about 2.6% in July, compared with a year ago. Businesses have been warning investors and consumers about higher costs and prices because of tariffs.
Alex Veiga, The Associated Press
