Stocks fell on Wednesday, as investors awaited a key earnings report from tech giant Nvidia and digested disappointing results from Targe

The Dow Jones Industrial Average rose 40 points, or 0.1%. The S&P 500 fell 0.4%, and the Nasdaq Composite dropped 0.5%.

"Like most investors, we will be watching NVIDIA's earnings report today for clues on how AI spending is coming in," Chris Senyek of Wolfe Research wrote in a Wednesday note. "We see negative news flow or disappointing spending trends as one of the key risks that could delay or even reverse the decline into the end of the year."

All eyes are on the AI ​​darling, which fell 1% during morning trading. The results could have greater significance than some major economic reports, given the chipmaker's $3.6 trillion market capitalization, and could set the tone for the rest of the week. Investors will be looking for details on demand for Blackwell's AI chips, which CEO Jensen Huang called "insane" last month.

Investors have been looking to the report as a potential catalyst to accelerate the market's recovery for the rest of the year, following the fading of a major post-election rally that pushed major benchmarks to new highs. Stocks struggled last week as Federal Reserve Chairman Jerome Powell signaled that the central bank was in no hurry to cut interest rates. Rising geopolitical tensions between Russia and Ukraine also worried markets on Tuesday.

In other news, retailer Target plunged 20% after posting its biggest revenue loss in two years and cutting its full-year guidance due to weak discretionary demand and cost pressures. Citi downgraded the retailer to neutral, citing downside risks to the stock. The disappointment weighed on other major retail stocks, with the SPDR S&P Retail ETF last down 1.5%.

Costco and Walmart fell slightly, while discount retailers Dollar Tree, Dollar General and Five Below each fell more than 3%. Home Depot fell 1%. Comcast shares edged higher as the media company announced plans to spin off its cable networks, including MSNBC and CNBC. The separation is expected to take about a year. Comcast first hinted at a potential split during its earnings call in October.

Investors will also be listening for comments from Federal Reserve Chairs Lisa Cook and Michelle Bowman, and Boston Fed President Susan Collins.

Source: CNBC