U.S. equity benchmarks began Wednesday trading with minimal movement as investors digested fresh U.S. inflation data and awaited key corporate earnings reports. The Dow Jones Industrial Average and the S&P 500 opened at 53,547 and 7,675 points respectively, while the Nasdaq Composite was flat at 26,104.
The personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 3.7% year-over-year in July, exceeding economist estimates and reinforcing expectations for a potential September rate hike. Markets priced in a roughly 40% probability of such a move, according to derivatives pricing. “We are still in a phase where inflation remains stubborn,” said Jeff Buchbinder, chief strategist at LPL Financial.
Sentiment was further influenced by geopolitical developments in the Middle East, where talks between Iran and Oman regarding a temporary joint maritime corridor aimed at easing oil transit through the Strait of Hormuz weighed on energy equities. Shares of Halliburton, ExxonMobil, and Occidental Petroleum each declined between 1% and 1.5%.
Nvidia’s stock slipped 0.2% in pre-market trading ahead of its after-hours earnings release, widely viewed as a barometer for the artificial intelligence investment cycle. “What matters most is the outlook,” said Stephanie Niven, portfolio manager at Ninety One. “The question isn’t whether growth is happening, but how quickly it’s accelerating or decelerating.” AMD and Marvell Technology also fell 1.0% and 1.4% respectively in pre-market trading.
Elsewhere, shares of Abercrombie & Fitch surged 11% after the retailer posted a record second-quarter net sales figure that topped Wall Street expectations, raised its full-year guidance, and authorized a $500 million share buyback program. The company’s stock had already jumped 25% on Tuesday following its upbeat outlook. Rival apparel names such as American Eagle, Ralph Lauren, Levi Strauss, and PVH also edged higher in pre-market trading.
In the healthcare sector, Summit Therapeutics advanced 16% after releasing positive late-stage trial data for Ivonescimab, a cancer therapy that outperformed AstraZeneca’s Durvalumab in a Phase 3 study for advanced biliary tract cancer. The trial, conducted in China, evaluated Ivonescimab combined with chemotherapy against Durvalumab plus chemotherapy as a first-line treatment.
Retailer Kohl’s declined 5% in pre-market trading after reporting adjusted non-GAAP earnings per share of $0.56 for the second quarter, missing estimates by one cent. Revenue remained flat at $3.3 billion, $100 million below consensus. The company also lowered its full-year net sales guidance to a decline of 1.5% to flat, from a prior forecast of 1.51% growth, citing refunds related to IEEPA tariffs and weaker-than-expected comparable-store sales.
J.M. Smucker rose 3.6% in pre-market trading after posting adjusted non-GAAP earnings per share of $3.24 for the first quarter, $1.02 above estimates, with revenue up 5.2% year-over-year to $2.22 billion. Operating cash flow improved to $425.7 million from a $10.6 million outflow a year earlier, while free cash flow turned positive at $337.3 million. The company raised its fiscal 2027 outlook, now projecting net sales to decline 1.0% to 2.0%, compared with a prior range of 3.0% to 4.0% decline, and adjusted EPS to be between $10.50 and $11.00, up from $9.75 to $10.25.
Intuit shares fell 12% in pre-market trading after issuing a fiscal 2027 and first-quarter outlook that fell short of consensus estimates, despite beating fourth-quarter earnings expectations. The guidance reflected weaker-than-anticipated demand across its tax and business software segments.
