CNBC Daily Open: S&P 500 and Nasdaq hit new heights ahead of Nvidia's earnings

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Wall Street reaches new highs
The S&P 500 and the Nasdaq Composite rose to fresh record highs as investors await earnings from AI chipmaker Nvidia after the close on Wednesday. The Dow Jones Industrial Average closed 0.17% higher at 39,872.99. Nvidia's shares rose 0.6% with option traders pricing in swings of as much as 9% up or down in reaction to its earnings. Treasury yields fell and oil prices drifted lower.

Rate cuts several months away
Federal Reserve Governor Christopher Waller said he does not think further rate increases are necessary, but he will need convincing before backing any rate cuts. "I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy," Waller said. According to the CME Group's FedWatch Tool, the first rate cut could come as early as September. 

Gasoline reserve release
The Biden administration will release 1 million barrels of gasoline from reserves to reduce prices at the pump ahead of the Fourth of July holiday. OPEC production cuts and fears the Israel-Hamas war could engulf the wider Middle East sent U.S. gasoline futures soaring 19%. "By strategically releasing this reserve in between Memorial Day and July 4th, we are ensuring sufficient supply flows to the tri-state [region] and northeast at a time hardworking Americans need it the most," Energy Secretary Jennifer Granholm said.

Pixar job cuts
Pixar Animation Studios will lay off about 175 employees,or around 14% of its workforce,