Dow Falls 0.04% Amid Inflation Concerns Ahead of Nvidia Earnings
The Dow Jones Industrial Average fell by 21.54 points, or 0.04%, on Wednesday as investors digested hotter-than-expected US inflation data and awaited Nvidia's quarterly earnings report.
Annual inflation remained at 3.7% in July, above economists' expectations of 3.6%. Core PCE inflation, which excludes food and energy prices, held steady at 3.3% year-on-year but rose by 0.2% month-on-month.
The data has complicated expectations surrounding the Federal Reserve's September policy meeting, with market expectations for a rate hike increasing to around 42-44%. Oil prices also declined, falling nearly 3% to $85.95 a barrel as markets reacted positively to reports that Iran and Oman had discussed a temporary navigational corridor through the Strait of Hormuz.
Nvidia's earnings will be closely watched, as its results could provide insight into whether the huge investment in artificial intelligence infrastructure can continue supporting technology valuations.