The Dow Jones Industrial Average fell 53 points, or 0.1%, while the S&P 500 slipped 0.1%. The tech-heavy Nasdaq Composite declined 0.2%.
July’s PCE price index, the Federal Reserve’s preferred inflation gauge, rose 0.2% from the previous month and 3.7% year-on-year, with both readings coming 0.1 percentage point above economists’ expectations, CNBC reported.
Core PCE, which excludes food and energy prices, increased 0.2% month-on-month and 3.3% annually, in line with forecasts.
The inflation data comes as investors assess the outlook for US interest rates ahead of the Federal Reserve’s annual Jackson Hole gathering. The latest figures could add to uncertainty over the pace of any policy easing, with markets closely watching upcoming comments from Fed officials.
Nvidia remains the major focus for the market, with the chipmaker set to report earnings after the bell. The results are expected to provide fresh clues on the strength of AI-related spending and demand across the technology sector. Meta Platforms shares were also in focus after the company agreed to settle a lawsuit brought by state attorneys general over allegations that its social media platforms harmed young users.
US stock futures flat ahead of PCE inflation data, Nvidia earnings
US stock futures were little changed on Wednesday, August 26, as investors awaited the release of the Federal Reserve’s preferred inflation gauge and Nvidia’s quarterly earnings, with both events likely to shape expectations for interest rates and the outlook for the broader market.
Futures tied to the Dow Jones Industrial Average were up 85 points, or 0.2%, while S&P 500 futures slipped 0.1%. Nasdaq-100 futures fell 0.2% after the tech-heavy index posted gains in the previous session.Nvidia earnings on deck
Nvidia is scheduled to report its second-quarter results after the US market close on Wednesday. Wall Street expects the chipmaker to post earnings of $2.09 per share on revenue of $92.28 billion, according to FactSet estimates.
The results are expected to draw particular attention given Nvidia’s outsized influence on the US equity market. The company is the largest constituent of the S&P 500, with a market capitalisation of more than $5 trillion.
Investors will also be watching Federal Reserve Chairman Kevin Warsh’s speech on Friday at the central bank’s annual symposium in Jackson Hole, Wyoming. Market participants are looking for clues on the Fed’s policy outlook, although Warsh could avoid signalling his stance ahead of the central bank’s September monetary policy meeting.
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