US Stocks Fall as Inflation Remains High Ahead of Key Earnings Reports
Wall Street stocks closed lower on Wednesday as US inflation remained steady but high. The S&P 500 and Dow Jones Industrial Average both fell, while markets in Paris and Frankfurt rose.
The personal consumption expenditures price index rose 3.7% in July from a year ago, matching June's annual increase. Analysts noted that the data remains close to three-year highs.
Heather Long, chief economist at Navy Federal Credit Union, said 'The United States still has an inflation problem.' The data gives the Federal Reserve time to wait and see, but it didn't get any better in July either.'
Markets traded cautiously ahead of earnings from AI chip giant Nvidia and a widely anticipated Federal Reserve speech. Nvidia's shares fell 1.6%, while Meta shares rose 1.1% after reaching a settlement with US states.