U.S. equities showed limited direction on Wednesday, with major indexes ending marginally lower as investors balanced incoming economic data against expectations for Nvidia’s quarterly report due after the close. The Dow Jones Industrial Average declined 0.07% to 53,542, the S&P 500 slipped 0.04% to 7,680, and the Nasdaq 100 fell 0.07% to 29,189.
Domestic economic releases offered a mixed picture. The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, held steady at 3.7% year-over-year in July, unchanged from June and above the 3.6% forecast by economists. The data set also included industrial orders and second-quarter GDP figures, which added to the patchy macroeconomic backdrop.
Attention now turns to the Kansas City Fed’s annual Jackson Hole symposium, set to begin Thursday. Markets will focus on a speech by Fed Governor Kevin Warsh on Friday for signals on the central bank’s policy trajectory.
Energy markets provided modest support as oil prices eased. Reports indicated Iran and Oman are discussing the establishment of a temporary joint shipping corridor to facilitate oil transit through the Strait of Hormuz, potentially easing supply concerns in the region.
Chip stocks diverged ahead of Nvidia’s results. The AI leader’s shares slipped 0.8% after Tuesday’s rebound, reflecting caution ahead of its earnings release. Intel and Broadcom fell 1.5% and 1.4%, respectively, while AMD and Marvell Technology rose. Analysts emphasized the importance of Nvidia’s forward guidance, with Stephanie Niven of Ninety One noting that the pace of AI-driven growth, not the growth itself, would be the key determinant.
Elsewhere, software names underperformed. Intuit dropped 3% after issuing a cautious outlook, and Zoom Communications fell 5.9% on mixed quarterly results and a subdued current-quarter forecast. Consumer discretionary shares bucked the trend, with Abercrombie & Fitch surging 31% after beating revenue expectations and raising its full-year outlook.
