Wall Street stock prices on Wednesday appeared to open lower at the beginning of the trading day compared to the previous day's closing prices. 

Investors have been particularly wary of the tech sector's performance and are eagerly awaiting the release of Federal Reserve meeting minutes.

The Nasdaq weakened amid concerns over chipmaker Nvidia's upcoming earnings report, with investors fearing it may not meet expectations for the artificial intelligence sector.

Within minutes of trading, major indices reflected the market's apprehension. The Dow Jones Industrial Average slipped by 0.3 percent to 38,441.54, while the broader S&P 500 also declined by 0.3 percent to 4,961.67. The tech-heavy Nasdaq Composite Index dropped by 0.5 percent to 15,549.11.

Investors also awaited the release of minutes from the latest Federal Reserve meeting, but optimism surrounding the possibility of imminent interest rate cuts appeared to have waned.

E-commerce giant Amazon saw a 1.7 percent increase in its stock price following the announcement that it would join the prestigious Dow index, replacing Walgreens Boots Alliance. In contrast, Walgreens experienced a 3.4 percent decline in its shares.

Tech sector under scrutiny

Nvidia's stock, highly sought after due to its strong position in the AI market, experienced a significant downturn, with shares dropping by 5.4%, marking the largest percentage decrease since May 31, 2023.

This decline reflects a downward trend for Nvidia, which has been down for four of the past five days. Given Nvidia's influence on other AI-related stocks, there's potential for sharp price movements in the sector following its earnings report.

Read more: Nvidia topping chip-making market for AI, decreasing competitive funds

The sell-off signals a degree of caution among investors, compounded by concerns about inflationary pressures that further add to the uncertainty surrounding Nvidia's earnings announcement. Analysts attribute the sell-off to investors hedging their positions ahead of the earnings report and concerns about inflationary pressures.

"I think what you're seeing is just some hedging up ahead of the results," explained Sevens Report Research’s Tom Essaye in an interview with Barron’s. "I think that’s part of it. The other part of it is you're still seeing some follow-through from Friday selling, too, as people are getting, not nervous about a rebound in inflation, but a little less sure that inflation is just going to keep going straight down in a line."

Chinese stocks on the rise

Chinese stocks, on the other hand, have rallied as investors reacted to new signals of support from officials aimed at stabilizing the stock market. Hong Kong's Hang Seng index climbed 1.6%, while the Shanghai Composite rose 0.6%, marking its sixth consecutive day of gains, the largest streak since 2020. Meanwhile, Tokyo's Nikkei 225 slipped 0.3%, remaining 1.7% below its all-time high set in 1989.

Analysts note that Chinese stocks are diverging from global trends as measures to boost market sentiment gain traction. Recent efforts by Beijing to support the economy and stock market have led to volatility, with some measures failing to significantly bolster investor confidence.

"Chinese stocks are bucking the global trend this morning as actions to boost sentiment are winning out for now," Jim Reid, a strategist at Deutsche Bank, told Barron's.

The latest initiative involves closer monitoring of high-frequency trading firms by the Shanghai and Shenzhen stock exchanges, in collaboration with Chinese securities regulators. This move follows a three-day trading suspension for Ningbo Lingjun Investment, a quant fund which was accused of selling large quantities of stock.

Read more: US chip measures against China not 'technology blockade': Sullivan