US equity markets opened in positive territory on Wednesday as investors shook off earlier volatility to focus on a high-stakes earnings report from the world’s leading AI chipmaker. The S&P 500 climbed 0.5% in early trading, recovering losses from a turbulent start to the week. The Nasdaq Composite led the gains with a 1.0% jump, while the Dow Jones Industrial Average edged up by 69 points, or 0.1%. Nvidia remains the primary engine for market sentiment. The stock rose 1.7% ahead of its fourth-quarter results, with analysts projecting a massive 70% surge in profit to approximately 37.52 billion dollars. Investment in AI infrastructure shows no signs of slowing down. Major "hyperscalers" including Microsoft, Google, Meta, and Amazon are estimated to hit 600 billion dollars in capital expenditure for 2026, much of which is directed toward Nvidia's hardware. Beyond the chip sector, other tech players are showing strength. AMD shares added 1% following news of a multi-year agreement with Meta to deploy 6 gigawatts of processing power for its data centers. Trade policy continues to be a point of intense focus. While earlier fears of aggressive tariffs on Canada and Mexico weighed on sentiment, recent legal rulings have temporarily shifted the outlook. The U.S. Supreme Court recently invalidated certain unilateral tariff measures, leading to a pivot in strategy. The administration has since implemented a 10% blanket tariff on most imports under different legal authorities, though key goods like pharmaceuticals and critical minerals remain exempt. Market volatility is also being fueled by a split in performance across different sectors. While tech and AI-related stocks are driving the indices higher, more than half of the stocks in the S&P 500 actually traded lower in the early session. Sectors sensitive to trade and consumer spending are facing pressure. Industrial and consumer discretionary stocks have lagged as investors weigh the impact of new trade surcharges and a visible slowdown in the pace of US hiring. The CBOE Volatility Index, often called the market's "fear gauge," recently ticked up by over 4%, reflecting the high stakes of this week's corporate and economic data. Traders are pricing in a potential 6% swing for Nvidia following its announcement, a move that could dictate the direction of global markets for the remainder of the week. Solid underlying business investment continues to support US growth despite a slight slowdown in GDP. The focus remains on whether corporate earnings can justify current valuations amid the evolving trade and regulatory landscape.