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Indexes: Dow up 0.12%, S&P 500 up 0.07%, Nasdaq flat

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Capri Holdings ( CPRI ) rises on fourth-quarter revenue beat

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Nvidia ( NVDA ) results due after the bell

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Dick's Sporting Goods up after first-quarter results beat

(Updates after markets open)

By Shashwat Chauhan and Kanchana Chakravarty

May 28 (Reuters) - Wall Street's main indexes were

subdued on Wednesday after a sharp rally in the previous session

sparked by easing trade tensions, as investors awaited AI leader

Nvidia's ( NVDA ) results and minutes from the U.S. Federal Reserve's

last policy meeting.

Nvidia ( NVDA ) is expected to report a 66.2% surge in

first-quarter revenue, according to data compiled by LSEG.

Shares of the chipmaker rose 0.2% ahead of its earnings, due to

be released after markets close.

"There's kind of wait and see for Nvidia ( NVDA ) earnings tonight,

which have become one of the big macro market movers, both

because of the leverage to the AI trade and the AI theme and

also because of the linkages to global trade," said Ross

Mayfield, investment strategist at Baird.

Traders in the options markets are bracing for industry-wide

volatility, with defensive options contracts drawing heavy

attention for the VanEck Semiconductor ETF, the largest

semiconductor ETF.

At 09:49 a.m. ET, the Dow Jones Industrial Average

rose 50.77 points, or 0.12%, to 42,394.42, the S&P 500

gained 3.97 points, or 0.07%, to 5,925.57, and the Nasdaq

Composite lost 0.98 points, or 0%, to 19,198.18.

Most megacap and growth stocks traded up, with Google-parent

Alphabet rising 1% and Meta Platforms ( META ) adding

1.2%.

Six of the 11 major S&P 500 sub-sectors rose, with

Communication Services and information technology

showing the biggest gains.

All three main Wall Street indexes soared in the last

session after U.S. President Donald Trump backed down over the

weekend from his threat of 50% tariffs on imports from the

European Union.

The S&P 500 is now about 4% off its record closing high,

reached on February 19, falling as much as 18.9% below that

level in the wake of Trump's erratic tariff announcements that

have whipsawed markets for much of his second term.

Minutes from the U.S. Federal Reserve's last policy meeting,

when the central bank held borrowing costs steady, are slated

for release at 2 p.m. ET.

In earnings, Michael Kors-owner Capri Holdings

jumped nearly 9% after reporting a fourth-quarter revenue beat.

New York Fed President John Williams said central banks must

"respond relatively strongly" when inflation begins to deviate

from their target, given the high uncertainty around the

economic impact of U.S. tariffs and trade policy.

Yields on long-dated U.S. government bonds were slightly

higher after scaling multi-month highs last week. Those on the

benchmark 10-year note were up 3.9 basis points at

4.47%.

Global bond markets have been in the spotlight over concerns

about fiscal sustainability in major economies including the

United States and Japan.

Shares of sportswear retailer Dick's Sporting Goods

rose 2.6% after it posted a first-quarter results beat.

Cybersecurity firm Okta ( OKTA ) flagged risks related to

the uncertain economic environment but stuck to its full-year

outlook. Its shares dropped nearly 12%.

Declining issues outnumbered advancers by a 1.36-to-1 ratio

on the NYSE and by a 1.44-to-1 ratio on the Nasdaq.

The S&P 500 posted 18 new 52-week highs and no new lows,

while the Nasdaq Composite recorded 38 new highs and 31 new

lows.