Inflation Holds Steady Above Fed Target as Nvidia Results Loom

The Dow Jones Industrial Average held steady at the open on Wednesday as inflation data from the Commerce Department revealed price pressures remain elevated. The personal consumption expenditures price index, a key gauge for the Federal Reserve, rose 0.2% in July, pushing the annual inflation rate to 3.7%, exceeding expectations.

The Dow Jones consensus estimate was off by 0.1 percentage point, with both readings above the Fed's target of 2%. Core PCE, which excludes volatile food and energy prices, also increased 0.2% for the month and 3.3% from a year earlier, matching expectations.

The report showed stronger-than-expected consumer activity, with personal income increasing 0.4% in July and personal spending rising 0.2%. Goods prices declined 0.1%, helped by a drop in gasoline and other energy-related goods.