Nvidia Earnings Loom Large as Inflation Data Casts Shadow Over Wall Street

US inflation data released on August 26 showed a higher-than-expected annual rate of 3.7 percent in July.

The Commerce Department report added to the uncertainty surrounding the Federal Reserve's policy outlook, particularly ahead of Chairman Kevin Warsh's speech at Jackson Hole on August 28.

Economist Ellen Zentner noted that while the latest inflation print may not shift the balance for September's meeting, subsequent data pointing in the same direction could increase pressure on the Fed to move off the sidelines.

The odds of an interest rate hike at the next scheduled meeting in September stand at 38.1 percent, according to the CME FedWatch tool.