Investors are waiting for Nvidia's results.

On Wednesday, the stock market showed signs of stabilization after declines, and investors began to await Nvidia‘s earnings. These expectations are thought to provide an important clue in understanding how justified the AI-driven valuations are.

S&P 500 and Nasdaq increased in New York while most European stock indices closed with small losses. While oil prices dropped, Bitcoin fell below 90,000 dollars and the dollar gained value.

David Morrison, a senior market analyst at Trade Nation, stated, "The selling pressure had been easing since Monday, but investors were not willing to increase their overall risks while awaiting the chip giant Nvidia’s earnings report."

This November has been challenging for investors. As speculation rises that the year’s tech-driven rally has gone too far, concerns about the need for a sharp correction due to such inflated valuations are on the agenda.

The Fantastic Seven, which includes Amazon, Meta, Alphabet, and Apple, are behind the record levels recently recorded on Wall Street. However, there are concerns that a change in market sentiment could have widespread effects.

Nvidia became the first company to reach a market value of 5 trillion dollars last month. The company is set to announce its third-quarter results before the market closes.

Russ Mould, investment director at AJ Bell, warned, "The slightest news that disappoints investors could spark a storm in global markets."

Nvidia shares rose 2.9% in New York before the report was released. Investors are worried that any signs of weakness could trigger the deflation of the AI bubble. Fears are prevalent that the hundreds of billions of dollars invested in recent months may be excessive.

According to a Bank of America survey, more than half of fund managers believe that AI stocks are currently in a bubble, with 45% stating that this represents the greatest "wing risk."

These concerns were heightened after an interview with Sundar Pichai aired on the BBC. The CEO of Alphabet emphasized that if the AI bubble were to burst, every company would be affected.

Investors are also examining the minutes from the Federal Reserve meeting at the end of October, which revealed that many officials showed a tendency not to change interest rates in December. However, this development may disturb U.S. President Donald Trump, as Trump indicated on Wednesday that he would "like to fire" Jerome Powell.

Additionally, U.S. retailer Target cited weak consumer spending as the reason for a disappointing report, while more indicators about the true state of the economy will come from Walmart results scheduled to be released on Thursday morning. Target shares fell by 2.8%.

In Paris, Air France shares gained 3% after announcing intentions to acquire a stake in the Portuguese carrier TAP. Oil prices experienced a sharp decline as rising U.S. reserve reports overshadowed concerns related to attacks by Ukraine on Russian oil facilities.