Stock market today: Indexes dip ahead of Nvidia earnings as traders weigh Russia-Ukraine tensions

US stocks slipped on Wednesday as traders waited for Nvidia to report its latest quarterly results.

All three benchmark indexes reversed course after pointing up during pre-market trading. The move down comes as Russia-Ukraine tensions weigh on markets, with Ukraine deploying more Western-made weapons to hit targets inside Russia and conducting fresh strikes on Wednesday. Approval by the Biden Administration for Ukraine to use US-made weapons to hit targets in Russia hurt stocks early in Tuesday’s session before traders recovered to end mostly higher.

Traders, meanwhile, are eagerly awaiting Nvidia’s third-quarter results. The Jensen Huang-led chipmaker is on deck to report its earnings after the closing bell on Wednesday. Markets anticipate the firm will pull $33 billion in revenue over the last three-month period, marking an 83% increase on a year-over-year basis.

Investors also have their eye for the firm’s guidance for Blackwell, its next-gen AI chip.

“Nvidia is essentially a pure monopoly, and that’s continuing with their next generation Blackwell chips,” David Miller, the chief investment officer at Catalyst Funds, said in a note on Wednesday. He added that capital expenditures data showed other firms were “clearly” investing in Nvidia’s chips.

However, others argue that the stock is already priced to perfection, and that failure to meet lofty expectations could take some of the air out of the stock, which is trading at record highs heading into the report.

Options traders were pricing in an 8% swing ahead of the company’s earnings call, according to data compiled by Bloomberg. The stock was down 1.5% shortly after the opening bell.

Elsewhere, Target shares plummeted 20% after the firm slashed its guidance for the year and posted its worst earnings miss in two years.

Investors were also waiting on a line-up of Federal Reseve speakers on Wednesday, which could offer more guidance on the path of Fed policy. Fed Governors Lisa Cook and Michelle Bowman were scheduled to speak mid-day, while Fed President Susan Collins’ comments were scheduled in the late afternoon.

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

• S&P 500: 5,895.20, down 0.28%
• Dow Jones Industrial Average: 43,211.00, down 0.13% (-57.94 points)
• Nasdaq composite: 18,899.21, down 0.45%

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil ticked higher 0.85% to $69.98 a barrel. Brent crude, the international benchmark, was higher by 0.56% to $73.72 a barrel.
• Gold increased 0.31% to $2,639.85 an ounce.
• The 10-year Treasury yield rose 4 basis points to 4.42%.
• Bitcoin gained 3.37% to $94,617.