Nasdaq 100 Plunges on Hot PCE Inflation Fanning Rate-Hike Bets

Nasdaq 100 Falls as Hot PCE Inflation Stirs Rate-Hike Bets

The US stock market drifted sideways by midday Wednesday, with investors holding back ahead of Nvidia's after-the-bell results. However, the hotter-than-forecast July inflation print reignited speculation about a September rate hike.

The Personal Consumption Expenditures (PCE) price index rose 0.2% month-over-month in July, matching forecasts of 0.1%, while the annual rate held at 3.7%. Core PCE remained at 3.3%, still above the Federal Reserve's 2% target.

Nasdaq 100 led major benchmarks lower, dropping 0.6% to 29,041.12, a 168-point decline. The S&P 500 slipped 0.1% to 7,668.85, shedding roughly 8 points. Dow Jones Industrial Average fell 0.2% to 53,446.13, giving back about 123 points.

Gold sank 1.3% to $4,599.33 an ounce as in-line core inflation and firmer yields sapped bullion demand. Bitcoin eased 0.7% to $78,000. The yield on the 10-year Treasury note rose 4 basis points to 4.67%, while the 2-year yield added 4 basis points to 4.23%. The 30-year held at 5.19%.