Wall Street is relatively quiet as Nvidia earnings take center stage

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Wall Street has hovered near the flat line for the most part on Wednesday, as investors tread cautiously ahead of Nvidia’s (NVDA [https://seekingalpha.com/symbol/NVDA]) much-anticipated quarterly earnings report.

From a index point of view, the blue-chip Dow (DJI [https://seekingalpha.com/symbol/DJI]) leads the way higher by 0.3%. At the same time, the benchmark S&P 500 (SP500 [https://seekingalpha.com/symbol/SP500]) inched up 0.3% and the tech focused Nasdaq Composite (COMP:IND [https://seekingalpha.com/symbol/COMP:IND]) ticked up 0.3%.

Looking at the S&P 500 sectors, eight of 11 segments are in positive trading territory, with Energy and Info Tech leading the charge. At the other end of the spectrum, Communication Services has struggled the most so far.

Shifting to the bond market, the longer-end U.S. 10-year Treasury yield (US10Y [https://seekingalpha.com/symbol/US10Y]) has moved down by 2 basis points to 4.23%, and the shorter-end U.S. 2-year Treasury yield (US2Y [https://seekingalpha.com/symbol/US2Y]) has shifted down 6 basis points to 3.62%. Furthermore, a $70B 5-year Treasury note auction tailed, indicating weaker demand for government-backed fixed-income securities.

Nvidia (NVDA [https://seekingalpha.com/symbol/NVDA]) is poised to take center stage on this week’s earnings calendar, with its Q2 results due after the closing bell. Analysts are forecasting ~50% Y/Y growth in both sales and profits, fueled by relentless demand for AI chips and accelerating data center momentum.

“Nvidia is once again expected to report strong earnings, but that doesn't necessarily mean its stock price will move higher as a result. Nvidia shares are trading near all-time highs and the market has been pricing in expectations of strong earnings from Nvidia for some time, so valuations are elevated heading into earnings,” Clark Bellin, president and chief investment officer of Bellwether Wealth said.

Also on today’s earnings docket are CrowdStrike (CRWD [https://seekingalpha.com/symbol/CRWD]), Snowflake (SNOW [https://seekingalpha.com/symbol/SNOW]), and HP (HPQ [https://seekingalpha.com/symbol/HPQ]), along with several other names.

On the Fed front, Cook said she will sue Trump's administration to block her removal [https://seekingalpha.com/news/4489379-fed-gov-lisa-cooks-lawyer-says-she-will-sue-trump-admin-to-keep-her-job] after Trump announced his intention to dismiss her, citing alleged misconduct related to mortgages.

In tariffs news, Trump's punitive 25% tariffs on Indian goods [https://seekingalpha.com/news/4489377-trump-tariffs-india-china-summit] took effect on Wednesday, taking the total levy to 50%, among the highest rates imposed by the U.S.

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