Dow Jones Industrial Average retreats following cautious Fed Meeting Minutes

• The Dow Jones is down slightly on Wednesday after a failed attempt to reach 42,450.
• Equity markets are awaiting after-the-bell earnings from AI rally darling Nvidia (NVDA).
• The Fed’s latest Meeting Minutes show the Fed remains firmly entrenched in wait-and-see mode.

The Dow Jones Industrial Average (DJIA) is slightly lower on Wednesday, easing below 32,100 as equity traders await key earnings reports from tech heavyweight Nvidia (NVDA). The Federal Reserve’s (Fed) latest Meeting Minutes showed that the major central bank is still apprehensive about adjusting policy rates in the face of looming impacts from the Trump administration’s tariff policies. However, investors are still banking on a fresh rate-cutting cycle to kick off in September, although odds are drying up.

The Fed’s latest Meeting Minutes from the Federal Open Market Committee’s (FOMC) May 6-7 rate meeting revealed a deep-rooted wait-and-see approach. Policymakers noted the US Dollar’s (USD) safe-haven status has weakened and warned that a “durable shift” could impact the US economy. Most FOMC members agreed that inflation risks may be more “persistent than expected.” Fed staff cited tariff impacts as a key driver behind the FOMC’s lowering outlook on the US economy, linking deteriorating conditions and an unclear inflation-growth outlook to the Trump administration’s tariff policies.

AI tech rally monolith Nvidia (NVDA) is set to release its latest earnings report after the bell on Wednesday. Equity markets are expecting an Earnings Per Share (EPS) of 0.75, with revenue for the most recent quarter to top 43.25B, a 13.3% increase from the previous quarter. EPS has consistently beaten forecasts. However, this is the first time over the past year that investors expect Nvidia’s EPS to decline, with markets anticipating a return to 0.75 compared to last quarter’s 0.85.

Dow Jones price forecast

Dow Jones price action remains stuck in a near-term rut; the major equity index is trapped just south of the 42,500 region, though daily candles continue to find a foothold above the 200-day Exponential Moving Average (EMA) near 41,655. Momentum still lies in favor of bullish pressure, though it’s still a long climb back to record highs above 45,000 set late last year.

Dow Jones daily chart