Dow Futures remain near the neutral point as market participants await the highly anticipated quarterly earnings report from Nvidia, which has the potential to influence the prevailing optimism surrounding artificial intelligence. The semiconductor titan’s outlook for data center infrastructure investment is likely to be in focus, particularly as markets, concerned about the sustainability of heavy spending, have experienced a sharp sell-off in recent sessions. In the interim, Lowe’s and Target are set to provide valuable perspectives on the state of the U.S. consumer ahead of the crucial holiday shopping season, while the minutes from the Federal Reserve’s October monetary policy meeting are scheduled for release.

Dow Futures exhibited a subdued response on Wednesday, as market participants evaluated the significant drop in equities while preparing for Nvidia’s earnings report. As of 02:37, the futures contracts for the Dow, S&P 500, and Nasdaq 100 exhibited minimal variation. The primary indices declined in the previous session, continuing a trend of multi-day losses in equities driven by apprehensions regarding frequently leveraged expenditures on AI and elevated valuations within the technology sector. Chipmakers such as Advanced Micro Devices, Marvell, and Micron experienced declines, contributing to a downturn in the tech-heavy Nasdaq Composite index. A survey conducted by Bank of America highlights the prevailing nervous sentiment among fund managers, revealing that the predominant “tail risk” — the likelihood of an event leading to significant investment losses — is the perception that the AI industry may be experiencing a “bubble.” In individual stocks, Home Depot’s shares declined by 6% following the home improvement giant’s revision of its full-year forecast, setting a pessimistic tone ahead of a series of retail earnings reports scheduled for release this week. In other developments, recent data from payroll processor ADP revealed a moderation in private-sector job losses during the four weeks concluding on November 1. Concurrently, government statistics indicated a significant increase in the number of Americans receiving jobless benefits from mid-September to mid-October.

Attention is now directed towards the forthcoming results from Nvidia, a company that has positioned itself at the heart of the AI expenditure surge, thereby establishing itself as a significant force within the U.S. equity market. Nvidia, with a market capitalization of $4.41 trillion, constitutes over 7% of the weighting of the benchmark S&P 500. Consequently, its returns and outlook may significantly influence market sentiment in the concluding weeks of 2025. Furthermore, analysts highlighted that AI is not solely driving the stock market; it is also enhancing U.S. economic growth. This suggests that the ramifications of Nvidia’s recent figures could reach far. Nvidia, recognized for its graphics processing units that have established a benchmark for training and executing AI models, is projected to report third-quarter revenue of $55.19 billion and adjusted operating income of $36.46 billion, according to the reports. “[W]e anticipate that the ongoing discourse among investors will focus on the viability of infrastructure investment,” notwithstanding another surge in capital expenditures from hyperscalers and remarks regarding sustained investment, analysts noted in a report. Concerns regarding a surge in circular dealmaking within the AI sector, predominantly associated with Nvidia, have “increased as well,” the firm noted, while asserting that it remains “best positioned” to capitalize on an anticipated rise in AI compute demand. Nvidia’s shares experienced downward pressure ahead of the earnings report, declining by 2.8% on Tuesday.

Retail chains Lowe’s and Target are set to announce their earnings ahead of the commencement of U.S. trading. Off-price brand TJX Companies is set to disclose its earnings prior to the market opening today, while Walmart is scheduled to report on Thursday. In addition to Nvidia, investors have directed their attention towards retailers this week, particularly following an extended government shutdown that has resulted in a lack of essential official data required to assess the condition of the American consumer and the overall economy. Home Depot presented a distinctly pessimistic perspective on the matter on Tuesday. Executives at the firm had anticipated that a confluence of reduced interest and mortgage rates would support a surge in demand; however, the expected increase did not occur. The results illustrated a scenario of consumer hesitance leading up to the pivotal holiday season, as Americans chose to refrain from more expensive home renovations and installations due to the uncertainty generated by high U.S. tariffs.

In the interim, the minutes from the Federal Reserve’s October meeting are scheduled for release on Wednesday. The central bank reduced rates by 25 basis points to a range of 3.75% to 4% at the meeting last month, mirroring a similar decrease in September. However, Fed Chair Jerome Powell later emphasized that, despite anticipations for another reduction at the final policy meeting in December, a cut next month is not a certainty. The absence of new official economic indicators amid the federal government shutdown has prompted certain members to advocate for prudence prior to implementing another reduction, despite Fed Governor Christopher Waller endorsing such a measure earlier this week. Consequently, the outcome of the December meeting essentially hinges on a 50-50 probability, as per indication.

Bitcoin experienced a rebound on Wednesday, suggesting that there were buyers for the world’s largest cryptocurrency following a decline that has erased all gains recorded in 2025. The sentiment surrounding risk, a pivotal factor influencing the digital token, has been negatively impacted by the overall market caution regarding the future direction of the AI sector. Market participants have underscored the influence of uncertainty surrounding the Fed’s December rate decision. Since October 10, approximately $3.7 billion has exited U.S. Bitcoin-linked exchange-traded funds, coinciding with broader stock market declines driven by concerns regarding renewed trade tensions between the U.S. and China, as per reports. Data indicates that the total market value of all cryptocurrencies has decreased by $1.2 trillion over the past six weeks.