U.S. stocks showed little direction on Wednesday, taking a breather after surging closer to record highs earlier in the week. The S&P 500 dipped 0.1% in afternoon trading, reversing modest gains seen earlier in the day. Even with the slight pullback, the benchmark index remains within 4% of its all-time high—recovering strongly from being down about 20% just a month ago amid optimism that the worst of the economic disruptions from the U.S.-China trade war may be over.
As of 1:28 p.m. Eastern time, the Dow Jones Industrial Average had dropped 94 points, or 0.2%, while the Nasdaq composite hovered near unchanged levels.
Investors are now awaiting a critical earnings report from Nvidia, which is expected after the closing bell. The chipmaker, a leading name in the artificial intelligence boom, carries high investor expectations. However, concerns are growing that its stock may be overvalued, especially given its relatively flat performance so far this year. Shares of Nvidia were up 0.7% on the day.
Retailers were also in focus. Macy’s shares fluctuated through the morning before rising 1.3%. The company posted smaller declines in both revenue and profit than analysts had forecast. While it reaffirmed its revenue guidance for the year, Macy’s trimmed its profit outlook, citing tariffs and a slight pullback in consumer spending.
Other retail stocks also saw strong performance. Abercrombie & Fitch surged 16.5% after reporting better-than-expected results, driven by global growth and solid performance from its Hollister brand. Meanwhile, Dick’s Sporting Goods added 2.1% after exceeding quarterly expectations and maintaining its full-year outlook.
On the downside, Okta tumbled 13.7% despite reporting solid earnings. Analysts viewed the results positively, but investors may have had higher expectations, especially since the stock had already risen nearly 60% this year.
GameStop dropped 7.2% after disclosing it had purchased 4,710 bitcoin, valued at more than $510 million. The move follows a March announcement that the company might begin holding bitcoin as part of its treasury strategy.
Later Wednesday, investors will closely watch the release of minutes from the Federal Reserve’s most recent policy meeting. The Fed held interest rates steady for a third consecutive time and warned about rising risks to employment and inflation, partly due to new tariffs.
Global markets showed modest declines, though South Korea’s Kospi gained 1.3%, lifted by strength in tech stocks like Samsung Electronics.
In the bond market, the 10-year U.S. Treasury yield rose to 4.48%, up from 4.43% the previous day. Volatility in the bond market last week, fueled by fears over the country’s ballooning debt, has kept investors cautious.
Japan also saw turbulence, with a weak auction of 40-year government bonds drawing less demand than usual. The Bank of Japan’s gradual withdrawal from its aggressive bond-buying strategy is contributing to reduced interest from other institutional investors.
