Nvidia Earnings in Focus as US Stocks React to Elevated Inflation

US stocks opened lower on August 26 after July's personal consumption expenditures (PCE) inflation data came in above expectations. The Dow Jones Industrial Average fell 53 points, or 0.1%, while the S&P 500 slipped 0.1%. The tech-heavy Nasdaq Composite declined 0.2%.

July's PCE price index rose 0.2% from the previous month and 3.7% year-on-year, both readings coming 0.1 percentage point above economists' expectations. Core PCE, which excludes food and energy prices, increased 0.2% month-on-month and 3.3% annually, in line with forecasts.

Nvidia's earnings report is expected to provide fresh clues on the strength of AI-related spending and demand across the technology sector. The company is scheduled to release its second-quarter results after the US market close, with Wall Street estimating earnings of $2.09 per share on revenue of $92.28 billion.