Nvidia Earnings Loom Large as US Stock Market Hits Muted August Trading Session
The US stock market has been muted on August 26th, as investors await the after-hours results from Nvidia. At midday, the S&P 500 is up a mere 0.01% to 7,678, while the Nasdaq Composite has fallen 0.12% to 26,117. The Dow Jones Industrial Average is trading 0.18% lower at 53,480.
The market's sensitivity to inflation data is evident in today's reaction to the July Personal Consumption Expenditures (PCE) numbers. Prices rose 3.7% in the 12 months to July, slightly above analyst estimates. This has weighed on morning trading, with markets particularly concerned about anything that might make the Federal Reserve raise interest rates.
Nvidia's earnings report is expected to provide some insight into the sustainability of the AI boom and whether massive capital outlays are justified. As a bellwether for the entire AI ecosystem, Nvidia may post over $100 billion in quarterly revenue for the first time.