[Wall Street Close] Broad Drop as Nvidia Earnings Dominate… Nasdaq Falls 0.51%

# Major U.S. Stock Indices Drop as Market Awaits Nvidia Earnings U.S. equities on Wall Street closed lower today, with major indices dropping as investors remained wary ahead of Nvidia’s quarterly earnings announcement. The market faced additional pressure following reports that the U.S. government ordered a halt in chip design services to China. The Dow Jones Industrial Average dipped by 244.95 points or 0.58%, closing at 42,098.70. The S&P 500, representing large-cap stocks, decreased by 32.99 points or 0.56%, ending at 5,888.55. The Nasdaq Composite, focusing on technology stocks, fell by 98.23 points or 0.51%, to conclude at 19,100.94. # Nvidia's Earnings Report in the Spotlight All eyes are on Nvidia as they prepare to report their earnings after market close. Investors are keen to understand the impact of the Trump administration's export controls on semiconductors to China. Nvidia's stock declined by 0.51% in anticipation of the earnings report. Analysts underscore the significance of Nvidia's earnings in shaping broader market sentiment. Tom Hainlin, Chief Investment Strategist at U.S. Bank, noted, “Consumer spending and corporate investment are key drivers of the economy. Nvidia is crucial in determining whether businesses are increasing their investments.” Axel Rudolph, Chief Technical Analyst at IG Group, commented, “Ahead of Nvidia's earnings, both market indices and Treasury yields have stagnated, pausing this week’s rally.” James Demmert, CIO at Main Street Research, described Nvidia’s earnings as a “turning point” for the broader market, stating, “This report could revive investor optimism, highlight AI potential, and shift focus away from tariff or tax policy concerns to positive growth narratives.” # Federal Reserve Minutes Provide Limited New Insights The Federal Reserve’s FOMC meeting minutes revealed concerns about the potential inflationary impacts of tariffs and the deteriorating employment outlook, complicating monetary policy. Peter Cardillo, Chief Market Economist at Spartan Capital Securities, commented, “The Fed minutes offered little new information, leaving markets in a holding pattern.” He added, “The Fed seems to be waiting for more clarity before making further policy decisions.” Omair Sharif, Founder of Inflation Insights, mentioned, “The risks to inflation outweigh the risks to employment, reducing the likelihood of a rate cut this year.” # Trade Policy Developments Impact Market Investors closely monitor U.S. trade negotiations. President Trump dismissed any criticisms of his trade policies, emphasizing their strategic nature. Chip-related stocks suffered significant declines following a Financial Times report that Trump ordered a suspension of chip design services to China. Cadence Design Systems dropped 10.67%, while Synopsys fell by 9.64%. # Stock Market Gainers and Losers Abercrombie & Fitch surged by 14.68% following better-than-expected earnings. In contrast, Okta's stock fell by 16.16% after maintaining guidance and highlighting uncertainties. GameStop shares dropped by 10.88% after reportedly purchasing 4,710 Bitcoin (BTC). # Volatility Index Increases The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), also known as the “fear gauge” of Wall Street, rose 1.85% to 19.30, indicating increased investor caution.