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US stocks traded in a narrow range on Wednesday as investors positioned for NVIDIA Corp.’s quarterly results. The S&P 500 slipped 0.1% at 9:35 a.m. in New York after gaining in only two of the past eight sessions. The benchmark remains just 0.2% from a record.
The Nasdaq 100 also edged down 0.1% as NVIDIA shares fell 0.5%. The Dow Jones Industrial Average gained 0.2%. A basket tracking the so-called Magnificent Seven tech giants, including Apple and Meta, showed little movement. NVIDIA now represents 8% of the S&P 500 by weighting, making its earnings critical for market direction.
The US Stock Market continues to experience volatility driven by tech earnings and policy updates. Options traders expect a sharp move in NVIDIA stock following its report, with Bloomberg data showing a 5.9% implied swing in either direction. Analysts note that a strong performance could fuel broader gains, while any disappointment may halt recent momentum in big-cap technology shares.
Market participants widely view NVIDIA as a barometer for artificial intelligence investment. Clark Bellin, president and chief investment officer at Bellwether Wealth, said much of the S&P 500’s advance relies on optimism around AI. “NVIDIA is the ultimate bellwether for the AI story, and investors look to this company every quarter for reassurance,” he wrote in a note.
Many US Stocks are showing resilience despite global economic uncertainty. NVIDIA’s results arrive after the company recently became the world’s most valuable by market capitalization, surpassing $4 trillion. According to LSEG estimates, analysts expect second-quarter revenue of $45.9 billion, representing a 53% increase from the same period last year. Data center sales, driven by AI workloads, remain the company’s largest growth engine.
Also Read: US Stock Market Today: S&P 500 falls 0.1%, NASDAQ 100 drops 0.1%, NVIDIA Gains 0.5%
The S&P 500 remains a key benchmark for gauging investor sentiment in major sectors. Outside the semiconductor sector, several individual stocks posted significant gains. Kohl’s Corp. surged 28% after forecasting improved full-year sales, signaling progress in its turnaround strategy. American Eagle rose 5.2% following news of a marketing partnership with NFL player Travis Kelce. Cracker Barrel climbed 5.2% after canceling plans to alter its logo.
By contrast, Abercrombie & Fitch declined 8.7% despite reporting results slightly ahead of expectations. Krispy Kreme dropped 7% after JPMorgan downgraded the stock to underweight, citing execution risks in its turnaround efforts. JM Smucker shares also fell 7.9% after first-quarter net sales weakened across key product categories.
With over 90% of S&P 500 companies having reported results, corporate America is on track for an eighth straight quarter of profit growth. Bloomberg Intelligence estimates earnings will rise nearly 11% this season, more than triple preseason forecasts.
Elsewhere, MongoDB soared 33% after reporting stronger-than-expected quarterly results and lifting its full-year outlook. Okta gained 7.8% on better earnings and guidance. Photronics added 3.2% after surpassing analyst expectations.
On the economic front, mortgage applications fell 0.5% in the week ending August 22, according to Mortgage Bankers Association data. Refinancing activity declined, though purchase applications increased slightly, tempering the broader downturn in lending activity.
