Stocks traded lower Wednesday as investors awaited Nvidia's (NVDA  ) earnings due out after the bell. Market participants also digested the minutes from the Federal Reserve's May meeting as they looked for direction as major averages rebound from April's tariff-induced lows in recent weeks.

The Dow Jones Industrial Average (DIA  ) sank over 240 points, while the S&P 500 Index (SPY  ) lost nearly 0.6% and the tech-heavy Nasdaq Composite (QQQ  ) dropped 0.5%.

Semiconductor darling Nvidia is set to report its first-quarter earnings after market close, and investors are looking for any further negative impacts from the Trump administration's new restrictions on Chinese chip exports. The company previously said it would take a $5.5 billion write-down on inventory related to the new export license requirement.

The report is one of the most anticipated of the season, as the stock is a bellwether for the artificial intelligence industry. Over the past eight quarters, Nvidia has surpassed Wall Street expectations for its revenue and only missed one earnings forecast throughout that period. Still, the stock has struggled in recent months as a new AI model from China's DeepSeek and President Donald Trump's tariff policies cooled down the previously explosive demand for chipmakers.

Wall Street expects Nvidia to report adjusted earnings per share of $0.88 on revenue of $43.3 billion, according to Bloomberg consensus data, compared to its adjusted earnings of $0.61 on $26 billion in revenue from the same period last year.

The market is coming off of a winning session on Tuesday that saw the Dow rally more than 700 points after Trump said he would delay a 50% tariff on imports from the European Union to July 9. The broader market S&P 500 also added over 2%, while the Nasdaq advanced 2.5% as investors hope for more trade deals in the coming weeks.

Before the bell on Wednesday, Macy's (M  ) slashed its full-year profit guidance despite its fiscal first-quarter earnings beat as the department store giant said tariffs and "some moderation" in consumer discretionary spending is expected to impact its margins. The company now expects adjusted earnings per share of $1.60 to $2, compared to its previous forecast of $2.05 to $2.25. Macy's, however, reaffirmed its full-year sale guidance of between $21 billion and $21.4 billion.

Elsewhere, shares of retailer Abercrombie & Fitch (ANF  ) soared more than 14% higher on Wednesday even as the company cut its full-year profit outlook due to tariff impacts -- which it expects will cost its business $50 million -- as investors were encouraged by Abercrombie raising its full-year sales guidance. Identity software maker Okta (OKTA  ), meanwhile, saw shares fall 11% Wednesday after the company maintained its guidance despite its fiscal first-quarter earnings beat due to the uncertain macroeconomic environment.

Market participants also turned their attention towards the minutes from the Federal Open Market Committee's recent meeting released Wednesday afternoon. The summary showed policymakers grew concerned that tariffs could increase inflation and create "difficult tradeoffs" when it comes to future interest rate decisions.

"Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer," the minutes read. "Participants noted that the Committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken."

Looking ahead, Nvidia's earnings are expected to impact much of Thursday's market moves. However, tariff updates from the White House remain the key driver of investor sentiment as the broader market is on track to close out the month with gains.