Updates to after Fed minutes

By Caroline Valetkevitch

NEW YORK, May 28 (Reuters) - U.S. stock indexes were narrowly mixed on Wednesday afternoon as investors digested minutes from the last Federal Reserve meeting and awaited results from AI bellwether Nvidia.

Shares of Nvidia NVDA.O were up 0.9% ahead of its report, due after the closing bell. Analysts expect the chipmaker to report a jump in first-quarter revenue, according to LSEG data.

The Nasdaq was slightly positive while the S&P 500 and Dow were down.

"The market is spinning its wheels today," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"The Fed minutes really didn't reveal anything new," he said. "They basically indicate the Fed is in a wait-and-see mode and staying the line, trying to get more clarifications on trade."

U.S. President Donald Trump backed down over the weekend from his threat of 50% tariffs on imports from the European Union, driving stocks up sharply on Tuesday.

Besides Nvidia, Salesforce CRM.N results are due after the closing bell. Its shares were last down 0.8%.

With Nvidia results ahead, traders in the options markets were bracing for industry-wide volatility, with defensive options contracts drawing heavy attention for the VanEck Semiconductor ETF SMH.O, the largest semiconductor ETF.

The Dow Jones Industrial Average .DJI fell 110.02 points, or 0.26%, to 42,233.63. The S&P 500 .SPX lost 7.39 points, or 0.12%, to 5,914.15 and the Nasdaq Composite .IXIC gained 10.40 points, or 0.05%, to 19,209.56.

According to the minutes of the Fed's May 6-7 session, U.S. central bank officials acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment.

The S&P 500 is still down from its record closing high, reached on February 19. It fell 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.

A poll of strategists and analysts conducted by Reuters showed that many market participants expected the benchmark index to finish the year near current levels.

Shares of sportswear retailer Dick's Sporting Goods DKS.N gained 1.9% after its first-quarter results beat estimates.

Declining issues outnumbered advancers by a 2.3-to-1 ratio on the NYSE. There were 86 new highs and 23 new lows on the NYSE.

On the Nasdaq, 1,651 stocks rose and 2,703 fell as declining issues outnumbered advancers by a 1.64-to-1 ratio.

(Additonal reporting by Shashwat Chauhan and Kanchana Chakravarty in Bengaluru; Editing by Pooja Desai and David Gregorio)

((caroline.valetkevitch@thomsonreuters.com))