(Sharecast News) - US stocks finished with small gains on Wednesday, with upside limited by nervousness ahead of the release of Nvidia's earnings, and uncertainty surrounding the future of the Federal Reserve.
Markets were relatively rangebound, reflecting a scaling back of risk appetite as investors waited for Nvidia's results due out after the close.
The S&P 500 and Nasdaq finished just 0.2% higher, while the Dow gained 0.3%.
"When the world's biggest company is set to announce its results, it's no surprise to see markets draw breath before the big reveal," said Danni Hewson, head of financial analysis at AJ Bell. "Expectations are normally sky high for Nvidia earnings, and the tech giant has a knack for beating them."
Nvidia, widely considered the poster child for the AI industry, is expected to increase profits per share by nearly 50%. Results from the S&P 500's largest constituent, widely viewed as a bellwether for broader market sentiment and a key proxy for AI development, come at a pivotal moment for US equities, with the "Magnificent Seven" cohort looking to recover from last week's sell-off.
Analysts expect Nvidia's update to act as a swing factor for the year-to-date rally, particularly given the firm's outsized weighting in major indices and its role in driving AI-related optimism across sectors.
Rumbling on in the background were ongoing concerns that the Fed is being opened up to direct political manipulation after Donald Trump suggested firing governor Lisa Cook - a move that would increase the influence of Trump-appointees on the board.
In macro news, US mortgage applications eased 0.5% in the week ended 22 August, according to the Mortgage Bankers Association, extending the prior week's 1.4% decline and partially unwinding the 14% surge seen across the first half of August. Last week's modest pullback coincided with a one basis point increase in the benchmark 30-year mortgage rate, as long-dated Treasury yields held firm following pro-inflationary signals in recent leading indicators.
Market movers
Shares in Kohl's surged 11% after the American department store chain beat forecasts with its second-quarter results and guided to a slightly lower-than-expected sales decline this year. The company, which is in the midst of a years-long turnaround to reinvigorate its product line-up and cut costs, said full-year net sales would likely decrease by 5-6% this year, compared with an earlier forecast of 5-7%.
Foot Locker was flat after posting a wider second-quarter loss than expected, while the 2.4% fall in revenues was more than analysts had forecast.
Meanwhile, US-listed shares of Canada Goose were up 16% on reports that its controlling shareholder, Bain Capital, had receives approaches for its stake, which would take the company private. As of March, Bain held a 60.5% share in multiple voting shares.
Dow Jones - Risers
Boeing Co. (BA) $234.90 3.54%
International Business Machines Corporation (CDI) (IBM) $245.59 2.60%
American Express Co. (AXP) $322.39 2.17%
Intel Corp. (INTC) $24.85 2.05%
JP Morgan Chase & Co. (JPM) $299.94 1.78%
Goldman Sachs Group Inc. (GS) $750.85 1.69%
Chevron Corp. (CVX) $159.76 1.03%
Microsoft Corp. (MSFT) $506.74 0.94%
Salesforce.Com Inc. (CRM) $249.46 0.69%
3M Co. (MMM) $156.68 0.59%
Dow Jones - Fallers
Nike Inc. (NKE) $78.03 -1.40%
Merck & Co. Inc. (MRK) $84.10 -1.39%
Dow Chemical Co. (DOW) $24.53 -1.38%
Johnson & Johnson (JNJ) $176.93 -0.84%
Amgen Inc. (AMGN) $287.97 -0.56%
McDonald's Corp. (MCD) $311.92 -0.45%
Unitedhealth Group Inc. (UNH) $303.40 -0.41%
Coca-Cola Co. (KO) $68.74 -0.25%
Home Depot Inc. (HD) $408.35 -0.12%
Verizon Communications Inc. (VZ) $44.17 -0.08%
S&P 500 - Risers
Kohls Corp. (KSS) $15.45 11.47%
CenturyLink Inc. (LUMN) $5.20 10.87%
Coty Inc. Class A (COTY) $4.16 9.03%
VF Corp. (VFC) $14.84 8.72%
Albemarle Corp. (ALB) $87.53 7.74%
Eli Lilly and Company (LLY) $734.84 5.62%
Estee Lauder Co. Inc. (EL) $92.76 4.63%
Helmerich & Payne Inc. (HP) $19.61 4.33%
Royal Caribbean Cr (RCL) $359.59 4.33%
Jefferies Financial Group Inc. (JEF) $64.69 4.32%
S&P 500 - Fallers
Ansys Inc. (ANSS) $0.00 -100.00%
J. M. Smucker Co. (SJM) $105.42 -5.32%
Sba Communications Corp. (SBAC) $208.13 -4.89%
Revvity, Inc. (RVTY) $88.76 -3.47%
Kroger Co. (KR) $67.59 -3.36%
Robert Half Inc. (RHI) $36.58 -3.12%
Brown Forman Corp. Class B (BF.B) $30.08 -2.88%
American Tower Corp (Reit) (AMT) $205.55 -2.65%
Archer-Daniels-Midland Co. (ADM) $62.48 -2.52%
Crown Castle International (CCI) $100.57 -2.33%
Nasdaq 100 - Risers
Qvc Group Inc Series A (QVCGA) $6.28 27.64%
Wynn Resorts Ltd. (WYNN) $123.20 3.46%
Workday, Inc. (WDAY) $229.71 3.06%
Sirius XM Holdings Inc (SIRI) $23.66 2.27%
Biomarin Pharmaceutical Inc. (BMRN) $58.76 2.11%
Intel Corp. (INTC) $24.85 2.05%
Vodafone Group Plc ADS (VOD) $12.05 1.69%
Check Point Software Technologies Ltd. (CHKP) $190.62 1.63%
Liberty Global plc Series C (LBTYK) $12.01 1.61%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $533.81 1.47%
Nasdaq 100 - Fallers
JD.com, Inc. (JD) $30.82 -3.11%
Baidu Inc. (BIDU) $89.86 -2.83%
Booking Holdings Inc. (BKNG) $5,615.68 -1.58%
NetEase Inc. Ads (NTES) $135.03 -1.44%
Microchip Technology Inc. (MCHP) $66.65 -1.43%
eBay Inc. (EBAY) $93.67 -1.02%
Meta Platforms Inc. (META) $747.38 -0.89%
Paypal Holdings Inc (PYPL) $69.65 -0.76%
Gilead Sciences Inc. (GILD) $113.92 -0.72%
Expedia Group Inc. (EXPE) $212.16 -0.66%
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