US markets today: Wall Street steady ahead of Nvidia results, Trump-Fed clash keeps investors cautious

US stocks were mixed on Wednesday as investors awaited chipmaker Nvidia’s quarterly results, seen as a key test of the artificial intelligence boom. The S&P 500 edged up less than 0.1%, staying close to its record high earlier this month. The Dow Jones Industrial Average gained 87 points, or 0.2%, while the Nasdaq Composite slipped 0.2%, AP reported.Market participants view Nvidia’s earnings update, due after the bell, as a barometer for the strength of AI adoption since the company dominates the chip supply powering the technology. Given its heavy index weighting, Nvidia also carries outsized influence on broader market sentiment. Shares of the chipmaker fell 1.1% in early trade.Among individual movers, Kohl’s jumped 19.7% after reporting better-than-expected quarterly results, while Cracker Barrel rose 5.2% as it scrapped plans to change its logo following a backlash on social media that drew comment from President Donald Trump. J.M. Smucker fell 6.1% after quarterly earnings missed Wall Street estimates.Bond yields moved unevenly, with the 10-year Treasury yield rising to 4.27% from 4.26% and the two-year Treasury slipping to 3.65% from 3.68%. Crude oil prices advanced, European markets traded mostly lower, and Asian bourses ended mixed.The broader market has been subdued this week after last week’s strong gains on hopes of Federal Reserve rate cuts. Political tensions have added to caution after Trump escalated his fight with the Fed by seeking to fire Governor Lisa Cook, whose lawyer said she would sue to contest the move. Trump has repeatedly clashed with the central bank over its cautious stance on rates, warning that his tariff policies could re-ignite inflation. He has also threatened to dismiss Fed Chair Jerome Powell.Despite political pressure, traders are betting the Fed will lower its benchmark interest rate at its September meeting. According to CME Group data, markets are pricing in a 90.3% probability of a quarter-point cut.The Fed cut rates in late 2024 after a long tightening cycle aimed at taming inflation, which was largely successful thanks to resilient consumer spending and a strong labour market. Rates have been held steady this year amid concerns that higher tariffs under Trump could stoke fresh price pressures. Lower rates make borrowing easier and can spur investment, though they also risk fuelling inflation.Investors now await Friday’s release of the US personal consumption expenditures index, the Fed’s preferred inflation gauge. Economists expect the July reading to show inflation steady at 2.6% from a year earlier, with businesses warning of rising costs from tariffs.