As investors await Nvidia's earnings announcement, U.S. markets are surging.

 As investors wait for the earnings announcement from Nvidia, U.S. markets are climbing.

As investors anticipate Nvidia's results report this evening, stocks were up on Wednesday. Nvidia makes chips for artificial intelligence.

The Dow Jones Industrial Average was up 113 points, or 0.3%, at 11:03 ET (15:03 GMT), while the S&P 500 was up 0.8% and the NASDAQ Composite was up 1.3%.

Tuesday's closes were lower by 0.5% and 0.3%, respectively, as the blue-chip Dow Jones Industrial Average and the broad-based S&P 500 both gave up some of their recent gains.

This came after a number of retail companies experienced losses, including Dick's Sporting Goods (NYSE:DKS), which had its worst daily performance ever after lowering its full-year profits expectations, and Macy's (NYSE:M), which plunged 14% as net sales declined 8% year over year in the second quarter.

Other retailers are reporting today, including Kohl's (NYSE:KSS), a chain of department stores, which exceeded forecasts and updated its full-year projections.

Results from Nvidia could affect market sentiment 

However, the earnings highlight is likely to occur after the closing bell when Nvidia (NASDAQ:NVDA), the most expensive chip designer in the world, reveals its most recent quarterly statistics.

The California-based startup, which creates the graphics processors that fuel generative AI, has been at the epicenter of the excitement surrounding the advancement of the young technology.

Its market value has increased by more than $1 trillion this year as a result of the stock's quadrupled share price. The company's view for the remainder of the year may have an impact on the direction of the AI boom as well as general market mood in the near future.

Continuity of the US economy

Recent data, particularly hotter-than-anticipated retail sales and rising consumer confidence, have shown that the U.S. economy is resilient despite the ongoing interest rate hikes to battle inflation.

Prior to the Fed's annual symposium, which will begin at the end of the week in Jackson Hole, Wyoming, President of the Richmond Fed Thomas Barkin issued a warning, saying the U.S. central bank must be prepared to deal with a reacceleration in the nation's economy. 

Less remarkable news came out of Europe. After a second consecutive month of business decline in the eurozone and the United Kingdom, the monthly surveys' flash findings on Wednesday indicated as much.

Crude declines due to the economic problems in Europe 

Wednesday saw a decline in oil prices as a result of Europe's negative PMI data, which served as a reminder to traders that this sizable consumer group will probably have an impact on demand in the second half of the year.

Positively, the American Petroleum Institute reports that the United States' oil stockpiles dropped by about 2.4 million barrels last week. This draw's confirmation is anticipated later on Wednesday from the Energy Information Administration, the department's statistical division.