US stocks open in the green: S&P up 0.3%, Dow jumps 100 points

Stocks were largely flat on Wednesday as investors digested recent earnings reports while awaiting the Federal Reserve’s meeting minutes and Nvidia’s quarterly results.

The S&P 500 edged up 0.3%, matching gains in the Nasdaq Composite. The Dow Jones Industrial Average rose 101 points, or 0.2%.

Abercrombie & Fitch and Macy’s gained over 31% and 1%, respectively, following stronger-than-expected quarterly results.

Nvidia, scheduled to report after the close, saw little movement in its shares as investors focused on the implications of China-related restrictions for the AI chipmaker, which continues to face robust demand for its graphics processors.

Later in the day, the Fed will release minutes from its May meeting, with Wall Street seeking insight into how policymakers are navigating monetary policy amid heightened economic uncertainty.

Investors came off a strong previous session where the Dow surged more than 700 points (1.8%) and the S&P 500 and Nasdaq gained 2% and 2.5%, respectively, breaking a four-day losing streak.

The market’s recent recovery follows President Donald Trump’s Sunday announcement to delay a planned 50% tariff on the European Union until July 9, reversing his earlier stance and boosting hopes for easing trade tensions.

Nvidia's earnings in focus

Investors are preparing for Nvidia’s first-quarter earnings report this week amid growing concerns over the effects of tariffs and its operations in China.

The company, led by CEO Jensen Huang, is set to announce its financial results for the first quarter after markets close on Wednesday.

Analysts forecast revenue of $43.2 billion and earnings per share of $0.75.

Wall Street remains generally optimistic about Nvidia’s near-term earnings, but uncertainty looms over the latter half of the year due to ongoing trade restrictions and tariff issues.

Nvidia recently flagged a $5.5 billion revenue impact following the Trump administration’s ban on sales of its H20 chip to China.

At a recent press event in Taiwan, Huang revealed that Nvidia’s market share in China has declined sharply to about 50% from 95% four years ago.

For the quarter ending in April, analysts expect revenue growth of 66% to $43.28 billion, according to LSEG.

While this growth outpaces that of Nvidia’s megacap peers, it represents a significant slowdown compared to the more than 250% growth reported a year earlier.

New export license requirements add to the uncertainty around projections for the rest of the fiscal year, which ends in January.

Current consensus estimates call for revenue growth of roughly 53% in the upcoming quarter and similar expansion for the full fiscal year.

Morgan Stanley analysts noted in a Tuesday report that Nvidia may face a more severe impact than previously anticipated.

“While our prior view was that the management team had at least partially anticipated this outcome, it became clear after the ban that Nvidia had been receiving signals suggesting H20 would be exempted, making the restrictions a material surprise,” the analysts stated.