Subdued Wall Street Awaits Nvidia's Earnings Amid Trade Relaxation

Wall Street was poised for a quieter open on Wednesday following a significant rally in the earlier session. This rally was fueled by diminishing tension in trade relations, notably between the U.S. and the EU. Investors await Nvidia's earnings report and details from the Federal Reserve's recent meeting.

Nvidia, a leader in AI technology, is expected to report a remarkable 66.2% increase in first-quarter revenue. With shares already rising 0.7% in premarket trades, the chipmaker is a pivotal player in market dynamics due to its impact on the AI sector and global trade interconnections.

The options market reflects anticipation of industry-wide volatility, as defensive contracts gain traction. Major Wall Street indexes surged previously after the Trump administration delayed tariff implementation, allowing negotiations with the EU. Despite some volatility, U.S. equities remain on track for substantial monthly gains as trade fears ease and economic data show positive trends.

(With inputs from agencies.)