Dollar and Yields Rise as Inflation Figures Exceed Expectations

The US dollar and UST yields ticked up on Wednesday as investors digested hotter-than-expected inflation figures.

According to the PCE index, a key measure of inflation favored by the Fed, headline inflation rose 0.2% month-over-month in July, exceeding the forecasted 0.1% increase and pushing the annual rate to 3.7%.

This development tempered expectations for a September rate hike, with traders still pricing in a 60-40 probability of an increase next month.

Nvidia's quarterly revenue and earnings beat estimates, but its Q3 revenue outlook didn't include data center chip sales from China, causing some concern over the company's margins.