Stock Markets Rally Ahead of Nvidia's AI Report Amid Fed Drama

Major stock indexes witnessed an upswing on Wednesday as investors eagerly awaited Nvidia's quarterly results, seen as a pivotal moment for artificial intelligence-driven market trends. Nvidia, a key player in AI, has electrified markets with its performance, and its impending report is highly anticipated.

The session's gains came amid turbulence around the U.S. Federal Reserve's independence. President Trump's threats to fire Fed Governor Lisa Cook prompted her legal team to announce intentions to sue. This political maneuvering has stirred anxiety among investors regarding the Fed's autonomy.

Despite these concerns, the dollar managed a recovery from its previous drop. U.S. Treasury yields, sensitive to interest rates, dipped, indicating potential interest rate cuts by the Fed, while the broader market closely monitored the tech giant Nvidia's performance, which continues to drive record equity index levels.

(With inputs from agencies.)