U.S. Stock Markets Hold Steady as Investors Await Nvidia’s Earnings After Trade Rally

U.S. stock index futures remained mostly flat on Wednesday, as investors took a cautious approach following a sharp rally in the previous session.

The positive momentum was driven largely by easing global trade tensions, particularly after U.S. President Donald Trump stepped back from his proposed 50% tariff on the European Union—a move that had threatened to escalate trade friction and unsettle markets.

With that concern temporarily out of the way, market participants are now turning their attention to Nvidia’s highly anticipated earnings report, set to be released after the market closes.

The chipmaking giant is expected to post a significant 66.2% increase in first-quarter revenue, according to data from LSEG. The anticipation around these results has already begun to stir the markets, with Nvidia shares edging higher in premarket trading.

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Investors are also watching the semiconductor sector closely, as options trading activity indicates a potential spike in volatility. Defensive options tied to the VanEck Semiconductor ETF have drawn increased interest, underscoring how pivotal Nvidia’s performance could be for the broader industry.

Despite the cautious tone on Wednesday, most megacap and growth stocks continued to trade slightly higher, building on the strong gains seen earlier in the week. With inflation data appearing moderate and earnings season offering positive surprises, the broader market remains on track for a robust finish to the month.

Both the S&P 500 and Nasdaq are on pace to post their best monthly returns since November 2023, fueled by improving sentiment around trade, strong corporate performance, and renewed investor confidence in risk assets.