U.S. equities showed little directional momentum on Wednesday, with major indices fluctuating within narrow ranges as investors awaited Nvidia’s after-hours earnings report. The Dow Jones Industrial Average fell 0.21% to 53,465 points, while the S&P 500 dipped 0.03% to 7,675. The Nasdaq 100 edged 0.02% higher to 29,292.14, reflecting modest gains in technology shares.
The session’s primary macro focus was the July personal consumption expenditures (PCE) price index, which held steady at 3.7% year-over-year, unchanged from June and matching consensus forecasts. The PCE index, the Federal Reserve’s preferred inflation gauge, suggests persistent price pressures that may temper expectations for imminent policy easing. Additional U.S. data released included a mixed batch of industrial orders and second-quarter GDP figures, which provided limited impetus to broader market sentiment.
Attention now shifts to the Kansas City Fed’s annual symposium in Jackson Hole, set to begin Thursday. Fed Governor Kevin Warsh’s speech on Friday is expected to offer further clarity on the central bank’s policy trajectory amid ongoing inflation concerns.
Chip sector volatility persisted ahead of Nvidia’s earnings, with the company’s shares down 1.2% despite a prior rebound. Analysts emphasized the importance of forward guidance, noting that the pace of AI-driven growth—rather than absolute revenue expansion—would be critical for valuation. Broadcom declined 1.2%, while Western Digital and Arm Holdings rose 3.6% and 2.4%, respectively.
Elsewhere, Intuit slumped 3.8% after issuing a cautious outlook for its tax software business, and Zoom Communications fell 6.9% following mixed second-quarter results and a subdued third-quarter forecast. In contrast, Abercrombie & Fitch surged 31% after reporting quarterly revenue that exceeded expectations and raising its full-year earnings guidance.
