Wall Street Slides as Inflation Hits 3.7% Ahead of Nvidia Earnings

Wall Street's main indexes closed slightly lower on August 26 after a US inflation reading came in hotter than expected. The Commerce Department reported annual US inflation increased 3.7 per cent in the 12 months through July, above expectations.

The latest print added another wrinkle to the Federal Reserve's policy outlook, raising the stakes for upcoming economic data. Investors will focus on Fed chairman Kevin Warsh's Jackson Hole speech on August 28, which could provide clarity on interest rate hikes.

Nvidia shares were down 1.6 per cent ahead of its quarterly update, a closely watched event that could rekindle doubts about the sustainability of the AI boom. The chip giant's report will be scrutinized for signs of strength in the tech sector.