FX.co ★ U.S. Stocks May Give Back Ground In Early Trading

### Market Update: Stocks Primed for a Potential Downturn Amid Key Announcements

After a somewhat volatile trading session that ended with slight gains, the stock market may be poised for a downturn in early Wednesday trading. Current indicators suggest a minor dip at the market's opening, with S&P 500 futures down by 0.2%.

### Earnings Reports and Market Reactions

Investors are likely looking to capitalize on recent market strength as they anticipate the release of Nvidia’s (NVDA) quarterly earnings. The AI powerhouse is set to announce its fiscal first-quarter results after today’s market close, with analysts forecasting significant growth in both earnings and revenue.

### Federal Reserve Minutes Awaited

However, market participants might exercise caution ahead of this afternoon’s release of the Federal Reserve’s latest monetary policy meeting minutes. These minutes could provide critical insights into the future trajectory of interest rates, especially following comments from Fed officials suggesting that higher rates may persist longer than previously expected.

### Economic Indicators

Despite expectations of lower rates by September remaining relatively high, probability has decreased from nearly 90% last week to 67%, according to CME Group’s FedWatch Tool. In other economic news, the National Association of Realtors is set to release its April report on existing home sales shortly after trading commences. Projections indicate a slight increase to an annual rate of 4.21 million, up from March’s rate of 4.19 million.

### Pre-Market Movers

On an individual stock basis, Target (TGT) is experiencing a significant drop in pre-market trading after reporting first-quarter earnings that fell short of analyst estimates. Citi’s downgrade of Hims & Hers Health (HIMS) to Neutral from Buy is also causing a notable pre-market decline.

Conversely, Analog Devices (ADI) is expected to see early gains after surpassing expectations in its fiscal second-quarter results. E-commerce giant Shopify (SHOP) may also trend upward following Goldman Sachs' upgrade from Neutral to Buy.

### Tuesday’s Choppy Trading and Overseas Markets

Tuesday's session was characterized by a lack of clear direction, as major indices fluctuated throughout the day. Despite this, both the S&P 500 and Nasdaq managed to close at new record highs. The S&P 500 added 13.28 points (0.3%) to finish at 5,321.41, the Nasdaq gained 37.75 points (0.2%) to close at 16,832.62, and the Dow inched up 66.22 points (0.2%) to end at 39,872.99.

In Asia-Pacific, markets mostly trended lower on Wednesday. Japan’s Nikkei 225 Index fell by 0.9%, while Hong Kong’s Hang Seng Index saw a slight decline of 0.1%. European markets mirrored this downward trend, with the German DAX Index dipping by 0.3% and both the U.K.'s FTSE 100 Index and France’s CAC 40 Index decreasing by 0.7%.

### Commodity and Currency Markets

In commodities, crude oil is experiencing a downturn, with futures dropping $0.74 to $77.92 a barrel after a previous decline of $0.64 to $78.66 a barrel. Gold prices are also falling, trading at $2,416.70 an ounce, down $9.20 from the previous close of $2,425.90. On Tuesday, gold prices dropped by $12.60.

On the currency front, the U.S. dollar strengthened to 156.57 yen from 156.17 yen at Tuesday’s New York close. Against the euro, the dollar is trading at $1.0831, a slight dip from yesterday’s $1.0854.

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This concise update aims to provide a snapshot of market conditions and key economic indicators as they unfold.