U.S. Stocks Slide on Inflation Data, Nvidia Set to Report Earnings

U.S. stocks closed mixed on Wednesday as hotter-than-expected inflation data and tech sector weakness weighed on sentiment ahead of Nvidia's highly anticipated earnings release.

The July Personal Consumption Expenditures Index, the Federal Reserve's preferred inflation gauge, rose at a 3.7% annual rate, exceeding economists' forecasts by 0.1% and surpassing the Fed's 2% target.

Nvidia declined 1.6% during regular trading as investors exercised caution ahead of earnings, but later gained 3.1% after hours following better-than-expected results.