US Stocks Hold Breath Ahead of Nvidia Earnings, Inflation Data

The US stock market is poised for a crucial session ahead of Nvidia's earnings report, PCE inflation data, and the Federal Reserve's policy outlook. S&P 500 futures fell 0.02% while Nasdaq futures slipped 0.05%, reflecting investors' cautious approach as they await these key events.

Nvidia's results are expected to be a major catalyst for the market, with its earnings serving as a barometer for investor confidence in artificial intelligence. The company has become a key driver of the AI trade, and any indication of slowing growth or cautious guidance could put pressure on semiconductor and technology shares.

The PCE inflation report is also closely watched, with economists expecting core PCE inflation to rise 3.3% year over year in July. A hotter-than-expected inflation reading could strengthen expectations for tighter monetary policy, while softer inflation could support hopes for a more accommodative Fed stance.