Wall Street Braces for Nvidia Earnings Amid AI Market Volatility

U.S. stocks declined as investors awaited Nvidia's quarterly report, pivotal for Wall Street. Nvidia's shares, reflecting the AI boom, dropped 2%. This aligns with concerns over increased spending by major tech players. Anticipated Federal Reserve rate cuts and the Personal Consumption Expenditure report further impacted market sentiment.

U.S. stocks took a hit on Wednesday, with investors on edge ahead of Nvidia's critical quarterly report which could significantly impact the AI-driven market rally.

Nvidia, a dominant AI processor vendor, saw a 2% drop in shares, trimming its impressive 154% gain year-to-date. This comes amid concerns over escalating spending in the AI sector by key players like Microsoft and Alphabet.

Keith Buchanan of GLOBALT Investments cautioned about Nvidia's sustained growth, noting the sector's dependence on its performance. Stakeholders are also eyeing upcoming Federal Reserve interest rate decisions and July's Personal Consumption Expenditure report for further market direction.

(With inputs from agencies.)