PCE Misses Expectations, Nvidia Earnings Report Looms
The S&P 500 and Nasdaq Composite both closed lower on Wednesday, with the Dow Jones Industrial Average also losing ground. The S&P 500 settled at 7,675.70 while the Nasdaq Composite finished at 26,130.20, down 0.08%. The Dow Jones lost 113.52 points to close at 53,463.88.
The Personal Consumption Expenditures (PCE) price index rose 0.2% in July, with the yearly rate coming in at 3.7%, both of which were higher than expectations by 0.1 percentage point. However, the core PCE, which excludes volatile food and energy prices, remained unchanged at 3.3%.
The mixed reading on inflation did little to boost growth stocks, with bond yields remaining high. The 10-year yield finished near 4.649%, while the 30-year held near 5.17%. These levels are seen as restrictive for a market that has been driven by heavy AI spending and higher earnings.
Nvidia is set to report its second-quarter earnings after the close, with analysts expecting $2.09 per share on $92.28 billion in revenue. The chipmaker's results will be closely watched to see if it can continue to drive growth in the tech sector.