(Aug 28): Wall Street's main indexes were little changed on Wednesday ahead of Nvidia's earnings report, with focus squarely on if the recent bull market rally that was led by the AI chip firm and other tech-related shares can be sustained.

The three main indexes have swung between small gains and losses this week, with the Dow drifting near a record high and the S&P 500 within 1% of an all-time peak, as investors await Nvidia's results after the bell.

The chip designer's shares were down marginally. Options pricing shows traders anticipate a move of around 9.8% in Nvidia's shares on Thursday, a day after it reports earnings, data from analytics firm ORATS showed.

Any disappointment in Nvidia's results could hurt megacaps and other semiconductor stocks, which have led 2024's rally on the prospect of artificial intelligence integration boosting corporate profits.

"Investors are a little nervous about what they're going to see and hear from Nvidia ... since expectations have been so high, you sort of wonder how much better can it get," said Sam Stovall, chief investment strategist at CFRA Research.

"The news itself will be driving not only Nvidia's shares, but the technology sector and the overall market."

Other chip stocks such as Qualcomm and Advanced Micro Devices edged lower, with the Philadelphia SE Semiconductor index down 0.2%. The broader tech sector fell 0.4%.

Megacaps such as Meta, Microsoft and Alphabet were down marginally.

At 09:41am the Dow Jones Industrial Average fell 16.08 points, or 0.04%, to 41,234.42, the S&P 500 lost 2.28 points, or 0.04%, to 5,623.52, and the Nasdaq Composite lost 28.90 points, or 0.16%, to 17,725.92.

Six of the 11 S&P 500 sectors were lower, led by a 0.7% drop in energy stocks as crude prices fell more than 1%.

Optimism continued to prevail that the US Federal Reserve will lower interest rates at its September meeting after Fed chair Jerome Powell's support for imminent policy adjustment last week, that had sparked broad-based market gains.

Odds of a 25-basis point reduction currently stand at 65.5%, while those of a 50-bps cut are at 34.5%, according to the CME Group's FedWatch Tool.

The Personal Consumption Expenditure report for July, due on Friday, is expected to provide further insight into the pace and magnitude of the central bank's rate-cut trajectory.

Comments on the economic outlook from voting member and Atlanta Fed president Raphael Bostic, due later in the day, will also be closely watched.

The market value of billionaire Warren Buffett's conglomerate Berkshire Hathaway surpassed US$1 trillion (RM4.34 trillion).

Super Micro Computer tumbled 18% after the AI server maker said it would delay the filing of its annual report for the fiscal year ended June 30, a day after Hindenburg Research disclosed a short position in the company.

Declining issues outnumbered advancers for a 1.76-to-1 ratio on the NYSE and a 1.8-to-1 ratio on the Nasdaq.

The S&P 500 posted 35 new 52-week highs and one new low, while the Nasdaq Composite recorded 26 new highs and 27 new lows.

Uploaded by Magessan Varatharaja