Dow Set to Open Lower After Strong Start to Week
U.S. stocks were headed for slight losses early on Wednesday after strong gains the previous day over easing trade tensions with the European Union. Earnings from chip maker Nvidia after the market close are set to take the spotlight.
Dow Jones Industrial Average futures were down 42 points, or 0.1%. S&P 500 futures were dropping 0.1% and Nasdaq 100 futures were falling 0.1%.
The major indexes look to be headed for a holding pattern after surging on Tuesday in reaction to Trump delaying threatened tariffs on the European Union. A further boost to sentiment came with data showing consumer confidence rebounded in May following five straight months of declines as a series of new tariff deals improved Americans’ views on the economy.
The yield on the benchmark 10-year Treasury note stood at 4.472% early on Wednesday, ticking up from the previous day.
The stock rally was helped by heavyweight Nvidia, which gained 3.2% on Tuesday as investors look ahead to its first-quarter earnings report.
“Nvidia’s earnings report is pivotal not just for Nvidia but for the entire stock market, as it can rejuvenate investor optimism across the board and help investors to focus on the power of AI and less on headlines out of Washington on tariffs and taxes,” said James Demmert, chief investment officer at Main Street Research.