Stocks dipped lower Wednesday as investors looked ahead towards Nvidia's quarterly earnings report due after closing bell; the artificial intelligence powerhouse's results could determine Wall Street's direction in the back half of the year. The Dow Jones Industrial Average fell nearly 160 points, while the S&P 500 Index and Nasdaq Composite lost 0.6% and 1.1%, respectively.

Here's how the market settled on Wednesday:

S&P 500 Index (SPY  ): -0.60% or -33.62 points to 5,592.18

Dow Jones Industrial Average (DIA  ):-0.39% or -159.08 points to 41,091.42

Nasdaq Composite Index (QQQ  ): -1.12% or -298.79 points to 27,556.03

In Focus:

Analysts are bracing for Nvidia's earnings results on Wednesday, with UBS analyst Solita Marcelli believing the semiconductor giant could see shares grow as much as 10% on its quarterly report, based on current options pricing for the stock.

Marcelli is also remains bullish on the long-term potential of artificial intelligence, but noted that global tech stocks are expected to see more gradual growth due to "potential headwinds from US macroeconomic data and further news on semiconductor export controls likely contributing to rising volatility."

Super Micro Computer's (SMCI  ) shares declined further on Wednesday after the company said it would delay its 10-K filing for its 2024 fiscal year ended June 30, stating its management needs more time to "complete its assessment of the design and operating effectiveness of its internal controls over financial reporting. This announcement followed Hindenburg Research's revealed short position on the stock Tuesday.

However,JPMorgan said the Hindenburg report has provided "limited evidence of accounting mistreatments"; Hindenburg had alleged that the AI server maker had manipulated its accounting.

"Net-net, we see the report as largely void of details around alleged wrong doings from the company that change the medium-term outlook, and largely revisiting the already known areas for improvement in relation to corporate governance and transparency," JPMorgan wrote in a note. "It is not surprising that the company has areas for improvement to further refine governance, transparency, and communication with investors, which would be more appropriate for a company of its size following its recent spurt of growth in conjunction with AI server demand; however, the lack thereof does not immediately suggest wrongdoing by the company, in our view."

On the Earnings Front:

Nordstrom (JWN  ) reported better-than-expected second-quarter results on Wednesday, benefiting from its cost cutting efforts. The department store also raised its full year guidance, now expecting adjusted earnings per share between $1.75 and $2.05, compared to its previous range of $1.65 to $2.05.

Nordstrom also expects full year sales in a range of a 1% decline to 1% growth from the prior year; its previous guidance called for a decline of 2% to an increase of 1%.

Foot Locker (FL  ) shares were under pressure Wednesday despite the retailer's comparable sales growing for the first time in six quarters as it works to improve its customer experience.

"The Lace Up Plan is working," CEO Mary Dillon said in a press release, referring to the company's turnaround strategy. "Our top line trends strengthened as we moved through the quarter, including a solid start to Back-to-School. We were also particularly pleased to deliver stabilization in our Champs Sports banner."

For Thursday:

Much of the market's moves will be attributed to Nvidia's results on Thursday. Other notable earnings reports include Salesforce (CRM  ), CrowdStrike (CRWD  ), Best Buy (BBY  ) and Dollar General (DG  ).