US and European stock markets retreated on Wednesday as investors eagerly awaited results from artificial intelligence giant Nvidia.The dollar firmed against rivals as US president-elect Donald Trump works on completing his cabinet picks, the outlook for US interest rates and the prospect of an escalation in the Russia-Ukraine war.”One of the most highly anticipated days of the earnings season, if not the most, the Nvidia earnings day, is finally here,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.The US chip behemoth releases its third-quarter earnings after US markets close.Shares in Nvidia fell as much as 2.9 percent in morning trading, but cut losses to stand 1.8 percent lower as European markets closed. Many investors see the company as a bellwether for the tech sector and artificial intelligence demand that have helped power Wall Street to multiple record highs this year.”It is rare that a single stock dominates the global financial space, however, tonight’s earnings report from Nvidia seems like a pivotal moment for global financial markets,” said Kathleen Brooks, research director at XTB.”A stunning earnings report could reenergize the AI trade and the entire US stock market rally, however, a disappointing report could trigger risk-off sentiment,” she added.Shares in Target plunged more than 20 percent after the major retailer issued lacklustre results and disappointing guidance.”Target’s results went down like a lead balloon,” said AJ Bell investment analyst Dan Coatsworth.”The discount department store operator has suffered from cost-conscious shoppers going the extra mile to find the best deals,” he noted, while its larger rival Walmart has benefitted from an influx of middle-class shoppers.The results of the two retailers are scrutinised for signals about consumer spending, a key driver of the US economy.Investors are also treading carefully this week amid uncertainty after Trump’s re-election and as he picks his cabinet, with several China hawks up for key positions fanning worries of another trade war between the economic superpowers.On Tuesday he named China hawk Howard Lutnick as commerce secretary and Wall Street is waiting on tenterhooks for news of his pick for treasury chief. Trump has pledged to ramp up tariffs on imports, with China particularly in his sights, but observers warn that such a move — along with planned tax cuts — could relight still stubborn inflation.That has dampened hopes for several interest rate cuts next year from the US Federal Reserve.Wall Street shot to record highs following Trump’s election victory, primarily on hopes he will follow through on pledges to cut taxes and government regulations.”Now that the initial post-election euphoria has faded, it is clear that markets are struggling for a catalyst to provoke a new rally,” said market analyst Chris Beauchamp at online trading platform IG.The war in Ukraine has also burst back into the thoughts of traders this week as the outgoing administration of President Joe Biden allowed Ukraine to use deep-strike weapons against targets in Russia, ramping up tensions.Markets briefly slumped on Tuesday after President Vladimir Putin signed a decree lowering Russia’s threshold for using nuclear weapons.- Key figures around 1630 GMT -New York – Dow: DOWN 0.3 percent at 43,131.47 pointsNew York – S&P 500: DOWN 0.8 percent at 5,872.52New York – Nasdaq Composite: DOWN 1.0 percent at 18,801.69 London – FTSE 100: DOWN 0.2 percent at 8,085.07 (close)Paris – CAC 40: DOWN 0.4 percent at 7,198.45 (close)Frankfurt – DAX: DOWN 0.3 percent at 19,004.78 (close)Tokyo – Nikkei 225: DOWN 0.2 percent at 38,352.34 (close)Hong Kong – Hang Seng Index: UP 0.2 percent at 19,705.01 (close)Shanghai – Composite: UP 0.7 percent at 3,367.99 (close)Euro/dollar: DOWN at $1.0514 from $1.0599 on TuesdayPound/dollar: DOWN at $1.2638 from $1.2682Dollar/yen: UP at 155.33 yen from 154.67 yenEuro/pound: DOWN at 83.20 pence from 83.54 penceBrent North Sea Crude: UP 0.2 percent at $73.42 per barrelWest Texas Intermediate: UP 0.3 percent at $69.46 per barrelburs-rl/sbk