Wall Street Indexes Dip as Inflation Data Beats Expectations Ahead of Nvidia Earnings

Wall Street's main indexes closed slightly lower on Wednesday after a US inflation reading came in hotter than expected. The Dow Jones Industrial Average fell 113.52 points, or 0.21%, to 53,463.88, the S&P 500 lost 1.58 points, or 0.02%, to 7,675.70 and the Nasdaq Composite lost 21.10 points, or 0.08%, to 26,130.20.

Investors were cautious ahead of Nvidia's earnings later in the day, with shares down 1.6%. Anything less than a stellar report from the chip giant could rekindle doubts about the sustainability of the AI boom.

The Commerce Department reported annual US inflation increased 3.7% in the 12 months through July, slightly above expectations. This added another wrinkle to the US Federal Reserve's policy outlook, raising the stakes for upcoming economic data.