Nvidia's earnings report could kill the momentum driving U.S. stocks higher, regardless of how it turns out.

Wall Street is growing increasingly uneasy about an options-driven momentum trade that has helped push the S&P 500 index into record territory. As demand for bullish call options surges to its highest level in years, some analysts have set their sights squarely on Nvidia Corp.’s NVDA, -0.06% Wednesday earnings report, warning that it could be the catalyst that slams the breaks on this trade, potentially reversing a substantial amount of the market’s rally over the past four months.Their reasoning is rooted ...