US Stocks Slip Ahead of Nvidia Earnings as Bond Yields Rise
The US stock market experienced a slight downturn ahead of Nvidia's earnings release. The S&P 500 Index was down by -0.02%, while the Dow Jones Industrial Average and Nasdaq 100 Index declined by -0.23% and -0.10%, respectively.
Earnings results were mixed, with Intuit down more than -4% after forecasting weaker-than-expected adjusted earnings and revenue for 2027. On the other hand, J M Smucker rose over +3% after reporting stronger-than-expected Q1 adjusted EPS and raising its 2027 adjusted EPS forecast.
US inflation data released today had a mixed impact on stocks. The July core PCE price index, the Fed's preferred inflation gauge, rose +0.2% m/m and +3.3% y/y, in line with expectations. However, higher bond yields weighed on stocks as the 10-year T-note yield increased by +3.0 bp to 4.658%.
The markets are eagerly awaiting Nvidia's earnings results, which will provide insight into AI spending trends. Analysts project that Nvidia's Q2 revenue will nearly double from a year ago, the fastest pace in two years.