Key keywords: stock market today, Nvidia Q2 earnings, tech-stock rebound, Nasdaq live updates, AI semiconductor sector, US equity volatility, Fed rate cut expectations, mega-cap tech performance U.S. stocks traded mixed on Wednesday, with a weeks-long tech-stock rally losing significant steam just hours after Nvidia reported its much-anticipated second-quarter earnings results that blew past Wall Street estimates. The chipmaker, which has been the face of the global AI boom over the past two years, posted adjusted earnings per share of $6.94 on revenue of $38.5 billion, both exceeding consensus analyst projections by more than 8%. It also issued third-quarter revenue guidance of $42 billion, plus or minus 2%, which also beat analyst forecasts of roughly $40.9 billion. Despite the blockbuster results, Nvidia shares fell more than 7% in intraday trading Wednesday, erasing nearly $200 billion in market capitalization at session lows, as investors cashed in on months of gains that had seen the stock rise more than 60% year-to-date heading into the earnings release. The selloff rippled across the broader tech sector, with the Nasdaq Composite dropping 1.8% in midday trading, erasing most of its gains from the previous two sessions. Fellow mega-cap tech names also came under pressure: Apple fell 1.2%, Microsoft dropped 1.7%, Meta Platforms slid 2.1%, and fellow semiconductor firm AMD lost 4.3%. The S&P 500 traded down 0.9% as of 2 p.m. ET, while the Dow Jones Industrial Average bucked the trend to rise 0.3%, supported by gains in energy and industrial stocks. Market strategists note that the pullback is largely driven by a classic “buy the rumor, sell the news” dynamic, as investors had priced in almost all positive outcomes for Nvidia’s earnings in the weeks leading up to the release. Concerns about stretched valuations across the AI sector are also weighing on sentiment: Nvidia was trading at roughly 75 times forward 12-month earnings ahead of the report, a multiple many analysts warned was unsustainable without even more explosive growth than the company had already delivered. Additional pressure on equities comes from lingering uncertainty around Federal Reserve monetary policy. Recent hotter-than-expected inflation and labor market data have led investors to push back expectations for the first Fed rate cut to November or December of 2024, a significant shift from projections of a June cut just three months ago. Higher interest rates disproportionately hurt growth-oriented tech stocks, as they reduce the present value of their future cash flows. Looking ahead, investors are closely watching upcoming comments from Fed officials, as well as monthly non-farm payrolls data due out Friday, for further clues about the path of interest rates. Market participants are also monitoring earnings reports from other semiconductor and AI-related firms due out in the coming weeks to gauge whether the AI boom is translating to broad-based growth across the sector, or if gains remain concentrated in a handful of top players.