Inflation Holds Steady as Nvidia Earnings Loom
The US stock market held steady at opening hours on Wednesday after inflation data showed prices remain elevated. The S&P 500 was little changed, while the Nasdaq Composite traded around the flatline.
The Dow Jones Industrial Average gained 53 points, or 0.1%, following the release of inflation figures for July. Personal consumption expenditures price index rose 0.2% on a seasonally adjusted basis in July, pushing the annual inflation rate to 3.7% according to the Commerce Department.
The report also showed stronger-than-expected consumer activity, with personal income increasing 0.4% and personal spending rising 0.2%. Goods prices declined 0.1%, while services prices increased 0.3% driven partly by a 1.2% rise in financial services and insurance.
The data leave inflation above the Federal Reserve's 2% target as policymakers consider their next move. Nvidia, scheduled to report its fiscal second-quarter earnings after the bell Wednesday, will be a major focus for investors with markets pricing in roughly a one-in-three chance of a rate move in September.