U.S. equities opened mixed on Wednesday as caution persisted ahead of key economic releases and Nvidia’s after-hours earnings report, a bellwether for artificial-intelligence demand.
The Dow Jones Industrial Average was up 0.04% at 53,593 points shortly after the open, while the Nasdaq 100 fell 0.2% to 29,105, according to broker IG’s pre-market indications. The broader S&P 500 futures were down 0.1%, with Nasdaq-100 futures declining 0.2%. The Dow’s marginal gain contrasted with the Nasdaq’s decline, reflecting divergent sector performance.
Market focus centered on the U.S. personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, which rose slightly more than expected in July on an annual basis. The data reinforced expectations ahead of the Kansas City Fed’s annual symposium in Jackson Hole, where Fed Chair Kevin Warsh is scheduled to speak on Friday. Investors sought clarity on the central bank’s policy trajectory amid ongoing inflation concerns.
Energy markets provided modest support as oil prices declined. Reports indicated Iran and Oman were in talks to establish a temporary maritime corridor to facilitate oil shipments through the Strait of Hormuz, easing supply concerns in the Persian Gulf.
Semiconductor stocks lagged ahead of Nvidia’s quarterly report, with AMD down 1.0% and Marvell Technology falling 1.4% in pre-market trading. Nvidia’s shares were down 0.2% in extended hours, with portfolio manager Stephanie Niven of Ninety One emphasizing the importance of management’s outlook over headline growth metrics.
Retail and software names saw sharp moves. Abercrombie & Fitch surged 11% after posting a record quarterly net sales beat and raising its full-year guidance while increasing its share buyback program to $500 million. The stock’s advance lifted peers including American Eagle (+3.4%), Ralph Lauren (+0.8%), Levi Strauss (+0.5%) and PVH (+0.2%).
Conversely, Intuit slumped 9.7% after issuing a weak outlook for fiscal 2027, despite beating earnings expectations in its latest quarter. The guidance included adjusted EPS of $22.68–$23.12 versus a consensus of $27.30, and revenue of $23.28–$23.51 billion against a $23.7 billion consensus. Zoom Communications fell 6.8% on mixed quarterly results and a disappointing third-quarter outlook.
Healthcare and biotech stocks were mixed. Summit Therapeutics jumped 16% on positive late-stage trial data for its cancer drug candidate Ivonescimab, which outperformed AstraZeneca’s Durvalumab in a Phase 3 study for advanced biliary tract cancer. The trial, conducted in China, compared Ivonescimab plus chemotherapy to Durvalumab plus chemotherapy as a first-line treatment.
Kohl’s declined 5% after missing second-quarter earnings by $0.01 per share on a non-GAAP basis, with revenue flat at $3.3 billion, $100 million below estimates. The retailer also lowered its full-year net sales guidance to a decline of 1.5% to flat, from a prior consensus of +1.51%, citing higher-than-expected refunds tied to IEEPA tariffs.
Consumer staples firm J.M. Smucker rose 3.6% after beating earnings estimates with adjusted EPS of $3.24, $1.02 above forecasts, and revenue of $2.22 billion, up 5.2% year-over-year and $90 million above expectations. The company also raised its fiscal 2027 outlook, projecting net sales to decline 1.0%–2.0% versus a prior estimate of -3.0% to -4.0%, and adjusted EPS of $10.50–$11.00 versus $9.75–$10.25 previously.
In Switzerland, the SMI advanced 0.5% to 14,601 points, nearing its recent record high of 14,669.51. The SMIM edged up 0.1% to 3,175, while the broad SPI gained 0.5% to 20,516. Construction shares led gains, with Amrize and Holcim both up 2.4%, followed by Sika at 1.5%. Nestlé added 0.7%, while Roche and Novartis were little changed at -0.0% and +0.1%, respectively. Kühne+Nagel slipped 0.5% amid shipping disputes.
