US Dollar and Yields Rise Amid Higher Inflation and Record Corporate Profits

The US dollar and Treasury yields rose on Wednesday as inflation figures showed that prices are still rising faster than expected. The inflation rate, measured by the PCE index, was higher than forecast at 3.7%. This has investors worried about a potential interest rate hike from the Fed.

Corporate profits are at record highs, but consumer spending is not keeping pace. The personal savings rate rose to 3.0% in Q2, suggesting that consumers may rely more on credit than savings in the coming months.

Nvidia reported stronger-than-expected earnings and revenue for Q2, but its gross margin is expected to dip to 74% in Q3. This has some investors wondering if it's a sign of a top for the company.