U.S. Stocks Dip as Fed Holds Rates Steady, Nvidia Earnings Loom

Markets retreated Wednesday as investors digested the Federal Reserve’s decision to maintain interest rates at 5.25%-5.50% while bracing for Nvidia’s pivotal earnings report. The Dow Jones Industrial Average fell 124 points (0.29%) to 42,219, with the S&P 500 dipping 0.14%. The Nasdaq Composite barely held positive ground, eking out a 0.01% gain.

Federal Open Market Committee minutes revealed growing concerns about persistent inflation and trade-related economic distortions. Policymakers debated adopting more flexible inflation targeting frameworks while continuing balance sheet reduction. The Fed’s cautious stance comes amid rising tariff impacts on employment and output.

All eyes now turn to Nvidia’s post-market earnings release. The chipmaker’s stock has weathered volatility this year amid U.S. export restrictions on AI components to China. Today’s results could set the tone for tech sector performance in coming weeks.