Stock market today: US futures drop as markets await Nvidia earnings

• US futures fell in premarket trading on Wednesday.
• Traders are waiting for AI darling Nvidia's quarterly earnings report due after the closing bell.

US stocks looked set to trade lower Wednesday as investors waited for Nvidia's quarterly earnings report, set to be released after the closing bell.

Futures for the tech-heavy Nasdaq 100 benchmark were down 0.42% shortly before 5 a.m. ET. S&P 500 futures were down 0.24%, while the Dow Jones Industrial Average was on pace to fall 0.2%.

Yields on 10-year Treasury notes and the US Dollar Index, which gauges the greenback's strength against six other currencies, traded flat.

Tuesday was a day of losses for US stocks. The S&P 500 slid back under the record closing high of 5,000 points that it had hit last week, while the Nasdaq 100 fell nearly 1%.

Trillion-dollar chipmaker Nvidia is set to post its quarterly earnings on Wednesday. AI has powered the Big Tech stock 235% higher over the past 12 months, but analysts have warned the whole market could plummet if its report doesn't meet investors' sky-high expectations.

"Implied options suggest that that the post results move is priced to be 10.5% in either direction, so stand by for potential fireworks across markets," said Deutsche Bank's Jim Reid in a morning note.

The Federal Reserve is also set to release the minutes from its January meeting on Wednesday, which could give traders more insight into the central bank's stance on inflation and interest rates.