Dow Holds Steady as Inflation Remains Elevated Ahead of Nvidia Earnings

The US stock market held steady at the open on Wednesday after inflation data showed price pressures remain elevated. The S&P 500 was little changed, rising 0.1%, while the Nasdaq Composite traded around the flatline. The Dow Jones Industrial Average gained 53 points, or 0.1%.

The personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose 0.2% on a seasonally adjusted basis in July, pushing the annual inflation rate to 3.7%. This is 0.1 percentage point above the Dow Jones consensus estimate.

Both readings were higher than expected: personal income increased 0.4% in July, while personal spending rose 0.2%. Goods prices declined 0.1% during the month, helped by a 2.7% drop in gasoline and other energy-related goods and a 0.9% decline in furnishings and durable household equipment.

The data leave inflation above the Fed's 2% target as policymakers consider their next move. The Federal Open Market Committee does not meet formally in August, giving officials more time before their next scheduled meeting on September 15-16.