Nvidia Earnings and Inflation Gauge Test Wall Street

US stock futures remained relatively unchanged on Wednesday as investors braced for a double test: Nvidia's quarterly results and the Federal Reserve's preferred inflation gauge.

Nvidia, expected to report quarterly revenue of roughly $92 billion to $93 billion, nearly double the year-earlier level, edged higher before the bell after snapping a seven-session losing streak on Tuesday. Deutsche Bank strategist Peter Sidorov noted that Nvidia's earnings surprises have become less dramatic than during 2023 and 2024, making guidance, margins, and evidence of sustained hyperscaler spending at least as important as the headline numbers.

Meanwhile, July PCE inflation is due out at 8:30 am ET. Economists surveyed by Barron's expect headline prices to rise 0.1% from June and 3.6% from a year earlier, with core inflation seen increasing 0.2% monthly and 3.2% annually.

Fundstrat's Tom Lee believes that cooling inflation, continued AI strength, and a supportive Fed message could preserve the bullish trend in the S&P 500.