U.S. equities showed limited movement on Wednesday, with major indexes closing mixed as investors adopted a cautious stance ahead of Nvidia’s highly anticipated quarterly earnings release. The Dow Jones Industrial Average fell 0.21% to 53,463.88, while the S&P 500 slipped 0.02% to 7,675.70. The tech-heavy Nasdaq 100 edged up 0.05% to 29,224.52.
Domestic economic data had minimal impact on trading. The core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, remained unchanged at 3.7% year-on-year in July, defying expectations of a decline to 3.6%. Additional reports, including industrial orders and last quarter’s GDP growth, painted a mixed economic picture.
Attention now turns to the Kansas City Fed’s annual Jackson Hole symposium, set to begin Thursday. Markets will closely watch Fed Chair Kevin Warsh’s speech on Friday for signals on the central bank’s policy trajectory.
Nvidia shares declined 1.6% ahead of its earnings, retracing part of Tuesday’s recovery. The chipmaker’s performance is often viewed as a proxy for the broader artificial intelligence investment cycle. "The outlook will be critical—it’s not just about growth, but the pace at which it accelerates or decelerates," said Stephanie Niven, portfolio manager at Ninety One.
Semiconductor stocks were mixed, with NXP and Lam Research among the decliners. Western Digital, Arm Holdings, and Seagate Technology advanced, gaining up to 4% in the Nasdaq 100. Software names underperformed: Intuit fell 3.2% after issuing a disappointing outlook, while Zoom Communications dropped 7% despite mixed second-quarter results and a lackluster forecast for the current quarter.
Consumer discretionary stocks outperformed, led by Abercrombie & Fitch, which surged over 33% after reporting quarterly revenue above expectations and raising its full-year earnings guidance. The stock briefly traded at levels last seen in early 2025.
