The U.S. stock market experienced a notable decline on Wednesday, with all three major indices suffering losses. The Dow Jones Industrial Average fell by 201.95 points, closing at 39,671.04, marking a decrease of 0.51%. Meanwhile, the Nasdaq index dropped 0.18% to 16,801.54, and the S&P 500 index closed down 0.27% at 5,307.01. The Federal Reserve's latest meeting minutes revealed that policymakers are not considering a rate cut in the near future, which dampened the market's risk appetite and contributed to the bearish trend. In addition, the yield on the two-year U.S. Treasury rose to a three-week high, further impacting investor sentiment.

On the commodities front, U.S. crude oil stocks increased, pushing international oil prices down by more than 1%. The price of West Texas Intermediate (WTI) crude oil fell to $77.57 per barrel, while Brent crude oil dropped to $81.90 per barrel. Market participants are reacting to supply pressures, amidst concerns that a rising inventory might signal weakening demand.

A bright spot in the tech sector was Nvidia, the chip giant known for its graphics processing units (GPUs). Although Nvidia's stock fell by 0.46% during regular trading hours, it surged over 6% in after-hours trading following a strong earnings report for the first quarter of the fiscal year. The company reported revenue of $26.04 billion, surpassing the projected $24.65 billion, with a net profit of $14.88 billion. Its adjusted earnings per share surprised analysts at $6.12, compared to expectations of $5.59. Additionally, Nvidia's gross margin came in at 78.9%, above the anticipated 77%.

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Nvidia’s impressive results were driven largely by its data center segment, which experienced a staggering 427% year-over-year growth, achieving $22.6 billion in revenue—well above market expectations of $21.32 billion. The company's CFO, Colette Kress, credited this boom to the shipment of its 'Hopper' GPUs, including the H100 model. The adoption of Nvidia's AI infrastructure by major cloud service providers has significantly bolstered growth, accounting for approximately 40% of the data center revenue.

The networking sector within Nvidia also reported remarkable performance, with revenues up by over 300% to $3.2 billion, primarily fueled by robust sales of its Infiniband products. Moreover, the gaming segment saw an 18% increase in revenue, reaching $2.65 billion. For the second quarter, Nvidia anticipates revenue of around $28 billion, slightly above the market's expectations of $26.61 billion. In a bid to enhance shareholder value, Nvidia announced a 1-for-10 stock split and raised its quarterly cash dividend from $0.04 to $0.10 per share.

On the broader market, the National Association of Realtors (NAR) reported an unexpected decline in U.S. existing home sales, which fell by 1.9% in April. Adjusted for seasonality, the annual sales rate stood at 4.14 million homes. This downturn in home sales is largely attributed to rising mortgage rates and home prices. After a spike to 7.22% in early May, the average rate on a 30-year mortgage has struggled to dip below 7% again, stifling demand in the housing market.

The Federal Reserve's meeting minutes also highlighted a lack of progress in combating inflation, leading to discussions among members about the potential need for future rate hikes if inflation does not trend downward toward the 2% target. Two-year Treasury yields rose by four basis points to 4.88%, while the ten-year benchmark yield climbed by 1.2 basis points to 4.43%. Goldman Sachs CEO David Solomon expressed skepticism about any potential rate cuts this year, stressing upcoming challenges with inflation and its cumulative impact on consumers' spending habits.

Market observers have noted that discussions surrounding potential shifts in the Fed's monetary policy are being influenced by upcoming economic data over the next couple of months. Peter Cardillo, chief market economist at Spartan Capital Securities, suggested that developments in the economy could lead to the Fed considering rate cuts perhaps in the latter part of the third or into the fourth quarter of this year. In this context, market participants are seeking new catalysts that could bolster confidence, with Nvidia's performance potentially serving as a key indicator of tech sector strength and consumer sentiment.

On an individual stock level, Target Corporation saw its shares plummet by 8.0% after reporting disappointing quarterly results and projecting weaker profits and comparable sales for the second quarter. Conversely, chip manufacturer Analog Devices witnessed a 10.8% increase in its stock price as the company provided optimistic revenue guidance for the upcoming third fiscal quarter.

In the tech arena, results were mixed among tech giants: Google shares dropped by 0.9%, while Apple faced a minor 0.8% decline. Amazon's stock remained unchanged, and Microsoft slightly rose by 0.3%. Electric vehicle manufacturer Tesla fell 3.5%, with the European Automobile Manufacturers Association reporting that only 13,951 Tesla vehicles were registered in April, a decrease of 2.3% year-over-year—the lowest tally since January 2023.

International gold prices also saw downward pressure as expectations around interest rate cuts weakened. Gold futures for delivery in May on the New York Mercantile Exchange fell by 1.34%, settling at $2,389.20 per ounce.

Overall, these market dynamics underscore the challenges facing investors as they navigate rising interest rates, fluctuating commodity prices, and evolving economic indicators amid a shifting landscape influenced by regulatory policies and consumer behavior.