FTSE 100 Slumps as US Inflation Data Sparks Rate Hike Fears
The FTSE 100 index closed down 8.04 points at 10,878.12 on Wednesday due to strong US inflation data. The personal consumption expenditures price gauge rose 3.7% on-year in July, surpassing the forecast of 3.6%. This has raised concerns about further interest rate hikes by the Federal Reserve.
Nvidia's upcoming earnings report was also a focus, with shares trading 1.1% lower ahead of its release. Analysts expect Nvidia to deliver a sales beat and raise, but what matters most is its balance sheet disclosures. Bank of America notes that the beat is priced, but the balance sheet is the debate.
In contrast, Meta Platforms' shares rose 2.3% after announcing it would pay up to $18 billion in fines and impose new limits on teenagers using social media platforms.