Inflation Remains Elevated as Oil Prices Drop and Markets Watch Nvidia Earnings
US inflation remains high at 3.7% in July, matching June's annual increase, according to data released on Wednesday. The personal consumption expenditures price index (PCE) is a closely watched metric by the Federal Reserve, which has been monitoring inflation levels as it considers interest rate decisions. Heather Long, chief economist at Navy Federal Credit Union, stated that 'the data still gives the Federal Reserve time to wait and see'.
Markets reacted cautiously ahead of key earnings reports from Nvidia and a highly anticipated speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium on Thursday. Oil prices dropped this week due to increased shipments through the Strait of Hormuz, but analysts noted that the details of the agreement remain unclear. This has provided some support for European markets, particularly in Paris and Frankfurt.
The Dow slipped 0.2% as the S&P 500 finished a hair lower. London's FTSE 100 fell 0.1%, while major crude oil contracts Brent and West Texas Intermediate declined by 0.8% and 0.2%, respectively.