Wall Street Pauses as Investors Brace for Nvidia Earnings and Fed Signals

Nvidia Earnings and Fed Minutes Set the Tone

On Wednesday, May 28, 2025, the S&P 500 edged lower by 0.59%, closing at 4,997. This marked a temporary pause in the tech-led rally that had lifted major indexes earlier in the month. The dip in momentum comes as investors adopt a cautious stance ahead of two key catalysts: Nvidia’s much-anticipated earnings report and the release of the Federal Reserve’s May meeting minutes.

Nvidia, a major driver of the ongoing AI boom, is widely expected to post strong quarterly results. Wall Street is closely watching to see if the company can sustain its momentum and continue justifying the lofty valuations seen in the broader tech space. A strong showing could reignite bullish sentiment in semiconductor and AI-related stocks.

Meanwhile, the Fed’s meeting minutes are being scrutinized for clues on the trajectory of interest rates. Rising bond yields have already stirred volatility in recent sessions. Should the minutes suggest a hawkish tone or reveal concern about inflation persistence, equity markets may face further downside pressure.

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What to Expect in the Next Trading Session

Looking to Thursday’s session on May 29, markets could swing sharply depending on how the incoming data aligns with investor expectations.

If Nvidia delivers another blowout quarter and signals continued demand for its AI chips, it may bolster risk appetite and revive the tech rally. However, any sign of slowing growth or soft guidance could trigger profit-taking across the sector. Tech-heavy indices like the Nasdaq are particularly sensitive to Nvidia’s performance given its weight and symbolic importance in the AI investment trend.

The Fed minutes are equally critical. If policymakers strike a cautious or dovish tone, suggesting no imminent rate hikes, equities may find support. Conversely, any mention of rate increases or financial instability could jolt bond yields higher and push stocks lower.

Adding to the uncertainty are recent developments in U.S. trade policy. Former President Trump’s proposal to impose 50% tariffs on EU goods was recently delayed, easing immediate concerns but leaving lingering doubts about future trade relations. Legal challenges to these proposed tariffs could introduce fresh volatility if court rulings or legislative responses materialize.

Investopedia has a full breakdown of market drivers, including earnings forecasts and macroeconomic trends.

As May draws to a close, markets remain highly reactive to both earnings momentum and policy signals. Thursday’s trading session could mark a turning point as investors decide whether to double down on tech or rotate to safer bets.