US Inflation Surprises to the Upside, Dragging Markets Lower Ahead of Nvidia Results

US inflation data released on Wednesday showed that prices are accelerating at a pace faster than economists' estimates, prompting futures market traders to increase their bets that the Federal Reserve will raise interest rates further this year.

The Dow Jones Industrial Average fell 29.7 points, or 0.06 percent, to 53,547.68, while the S&P 500 dropped 10.4 points, or 0.14 percent, to 7,666.88 at the opening bell.

Investors are eagerly awaiting Nvidia's quarterly results, which could carry significant signals about capital spending trends among major technology companies on AI infrastructure and ripple through valuations of related companies.