U.S. stocks are rising as investors await Nvidia’s earnings report

Investing.com — Stocks were rising on Wednesday as investors await tonight’s earnings release from artificial intelligence chip maker Nvidia.

At 11:03 ET (15:03 GMT), the was up 113 points or 0.3%, while the was up 0.8% and the was up 1.3%.

The blue-chip Dow Jones Industrial Average and the broad-based S&P 500 gave up some of their recent gains Tuesday, closing 0.5% and 0.3% lower respectively.

This followed weakness in a number of retail stocks, including Dick’s Sporting Goods (NYSE:), which fell 24% in its worst daily performance ever after slashing its full-year earnings guidance, and Macy’s (NYSE:), which dropped 14% as net sales fell 8% in the second quarter on an annual basis.

Other retailers report today, including department store operator Kohl’s (NYSE:), which and reaffirmed its full-year guidance.

Nvidia results could sway market sentiment 

The earnings highlight, however, is likely to come after the closing bell, as the world’s most valuable chip designer, Nvidia (NASDAQ:), releases its latest .

The California-based company, which manufactures the graphics processors that power generative artificial intelligence, has been at the center of global euphoria around the development of the nascent technology.

Its shares have tripled this year, propelling the stock’s market capitalization to above $1 trillion, and its outlook for the rest of the year could influence the near-term course of not only the AI boom but broader market sentiment.

U.S. economy shows resilience

Recent data, including hotter-than-expected and increasing , has pointed to resilience in the U.S. economy despite the series of hikes to combat .

This prompted Richmond Fed President to warn that the U.S. central bank must be ready to address a reacceleration in the country’s economy ahead of the Fed’s annual symposium at , Wyoming, starting at the end of the week. 

The news out of Europe was less impressive Wednesday after the flash readings of monthly surveys suggested a second month in a row of eurozone, and U.K., business contraction.

Crude retreats on European economic woe 

Oil prices weakened Wednesday as the weak in Europe reminded traders that demand will likely be affected in the second half of the year from this large group of consumers.

On a more positive note, U.S. crude inventories dropped by about 2.4 million barrels last week, according to data from industry body , with the , the statistical arm of the U.S. energy department, set to confirm this draw later Wednesday.

(Peter Nurse and Oliver Gray contributed to this item.)