Traders work at the New York Stock Exchange on Feb. 26, 2025.
NYSE
The S&P 500 traded near the flatline Wednesday, giving up its earlier gains, as the broad market index tried to snap a four-day losing streak.
The broad market index was last trading 0.1% lower. Meanwhile, the tech-heavy Nasdaq Composite added 0.5% as investors awaited earnings from artificial intelligence darling Nvidia. The Dow Jones Industrial Average fell 230 points, or around 0.5%.
Nvidia’s fourth-quarter earnings, due after the closing bell Wednesday, could be the next catalyst for the market. The stock climbed more than 3% Wednesday.
The report arrives at a pivotal time for Nvidia. The emergence of DeepSeek raised questions about the sustainability of the once-hot artificial intelligence trade. The chip giant and other momentum plays are also showing signs of fizzling, with Nvidia down 2% in 2025.
“Nvidia is the bellwether and market-darling stock that is of vital importance to the broader markets. Its performance provides meaningful guidance for the broader market tone. The importance for the tech sector cannot be understated,” said SWBC chief investment officer Chris Brigati.
Stocks traded off their highs as uncertainty around President Donald Trump’s trade policy heightened worries among investors. During his first cabinet meeting on Tuesday, Trump stated that tariffs against Canada and Mexico will take effect. He also declared he would soon expand his trade war to include 25% tariff on goods from the European Union.
“Policy uncertainty. … has certainly filtered its way into a lot of the soft data,” Liz Ann Sonders, chief investment strategist at Charles Schwab, told CNBC’s “Squawk on the Street” on Wednesday. “That’s why you’re seeing thing like buying intentions for big ticket items, capex intentions and spending plans really pull down.”
The main upcoming economic data release for investors will be the release of the personal consumption expenditures price index on Friday. The PCE is the Federal Reserve’s preferred inflation gauge.
Stocks are coming off a weak session. The S&P 500 and the Nasdaq both logged their fourth consecutive losing day. The 30-stock Dow was the outlier, with a roughly 0.4% advance.
A weaker-than-expected consumer confidence reading from the Conference Board weighed on stocks Tuesday. A raft of recent reports, including disappointing retail sales numbers and a weak consumer sentiment reading have spurred traders’ worries around the economy over the past week, leading to pressure on the major averages.
