FX.co ★ US Stocks Inch Down

US equities were mostly lower on Wednesday, weighed down by losses in major semiconductor names ahead of Nvidia’s earnings. The S&P 500 and Dow Jones Industrial Average slipped modestly below the flatline, while the Nasdaq 100 fell 0.5%.

Nvidia shares were volatile before the company’s results, due after the close, which are expected to offer crucial guidance on capital expenditure by AI hyperscalers—a key driver of US equity market gains in recent years. Other mega-cap tech names, including Microsoft, Tesla, Alphabet, and Amazon, also traded lower.

Intuit dropped 10% after its outlook fell short of investors’ more optimistic expectations. In contrast, Meta rallied 4% following news it had agreed to a $16.7 billion settlement with US states over its social media practices involving teenagers.

Outside the tech sector, traditional cyclical and defensive industries came under pressure as investors remained cautious about the macroeconomic backdrop. Solid consumer spending and income data, combined with stronger-than-expected PCE inflation readings, reinforced expectations that the Federal Reserve will maintain a restrictive policy stance.