US stock markets have exhibited a downturn as anticipation builds for Nvidia's quarterly earnings report and traders react to the Federal Reserve minutes.
Market Reaction to Fed Minutes
US stock markets showed a downward trend in response to traders reacting to the latest Fed minutes. On Wednesday, May 28, the Dow Jones traded at 42,219 points, losing 124 points or 0.29%. The S&P 500 fell by 0.14%, reaching 5,907 points, while the Nasdaq gained 0.01%, reaching 19,201 points.
Anticipations Surrounding Nvidia's Report
Nvidia's first-quarter earnings report is expected after the bell on Wednesday and is one of the most anticipated reports of the year. Nvidia's stock has been among the most volatile this year, affected by Trump's tariffs and bans on AI chip exports to China. However, the latest deals made during Trump's visit to the Middle East, along with a pause on the AI chip proliferation rule, have boosted the stock.
Potential Impact on AI Tokens
Currently, Wall Street anticipates stronger results than last year, with expected revenue of $43.3 billion and earnings per share of $0.88. This is likely to be primarily driven by data center revenue, expected to reach $39.2 billion, reflecting a 74% year-over-year increase. Positive news could impact AI-related crypto tokens that depend on Nvidia's infrastructure.
Financial markets remain under pressure from the expectations surrounding Nvidia's report and the implications of the Fed minutes, creating uncertainty for investors.
