US Stocks Slip on Hot Inflation Data Ahead of Key Earnings Reports
US stocks closed slightly lower on Wednesday after hotter-than-expected inflation data. The Commerce Department reported annual US inflation increased 3.7% in the 12 months through July, surpassing expectations.
This development adds another wrinkle to the Federal Reserve's policy outlook, with investors focusing on upcoming economic data and Fed Chair Kevin Warsh's speech at Jackson Hole on Friday.
Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, noted that while this print may not shift the balance for September's meeting, subsequent data pointing in the same direction could put pressure on the Fed to move off the sidelines.
Nvidia's quarterly update is also on investors' minds, with shares down 1.6% ahead of the release.