U.S. Stocks Dip on Fed Minutes, Chipmaker Uncertainty; Nvidia Gains Post-Earnings

U.S. stock indexes closed lower Wednesday as investors absorbed the latest Federal Reserve meeting minutes and reacted to declining chip design stocks. The Dow Jones fell 244.95 points (0.58%) to 42,098.70, the S&P 500 dropped 32.99 points (0.56%) to 5,888.55, and the Nasdaq lost 98.23 points (0.51%) to 19,100.94.

Investor sentiment was cautious following the Fed’s May 6–7 meeting minutes, which suggested policymakers may face tough decisions in balancing inflation and unemployment. Analysts noted that the Fed maintained a "wait-and-see" stance.

Chipmakers dragged markets lower after reports that the Trump administration ordered U.S. firms like Cadence Design Systems and Synopsys to halt sales of semiconductor design software to Chinese companies. Cadence shares plunged 10.7%, while Synopsys also declined.

Despite the chip sector weakness, Nvidia surged 5% after hours as the AI leader reported stronger-than-expected quarterly revenue. However, its Q2 forecast fell short of analyst estimates. Nvidia had ended regular trading down 0.5%.

Broadcom and AMD also rose post-market, gaining 3.2% and 1.5%, respectively, as optimism remained around AI and chip demand.

Market breadth was negative, with declining stocks outpacing advancers by nearly 3-to-1 on the NYSE and 2-to-1 on the Nasdaq. Volume reached 15.6 billion shares, slightly below the 20-day average of 17.7 billion.

Meanwhile, Dick’s Sporting Goods rose 1.7% after beating Q1 estimates. The S&P 500 is up just 0.1% year-to-date, still recovering from earlier declines tied to tariff volatility during Trump’s second term.

Analysts polled by Reuters expect the index to end the year near current levels, reflecting ongoing economic uncertainty and geopolitical tensions impacting investor confidence.