US Stocks Fall Amid High Inflation and Nvidia Earnings Anticipation

US stock markets closed lower on August 26 due to persistently high inflation in the country. The S&P 500 ended the session slightly below its previous level, while the Dow Jones lost 0.2%. Investors were also cautious ahead of Nvidia's quarterly results and a speech by Federal Reserve Chair Kevin Warsh.

The personal consumption expenditures price index, PCE, rose by 3.7% year-on-year in July - the same pace as in June. Despite remaining stable, the figure is near three-year highs. Heather Long, Navy Federal Credit Union's chief economist, said that 'the United States still has an inflation problem,' and the data give the Fed room to wait before making further decisions.

The annual symposium of central bankers and other economic policy specialists begins in Jackson Hole on August 27. Market participants expect a speech by Federal Reserve Chair Kevin Warsh on August 28 may offer signals about the regulator's approach to interest rates.