New York, Aug 27: US stocks closed mixed on Wednesday as fresh inflation data offered few signs of a significant easing in price pressures, leaving investors cautious about the Federal Reserve’s next move on interest rates.
The S&P 500 finished almost unchanged at 7,675.70, while the Nasdaq Composite slipped 0.08 per cent to close at 26,130.20. The Dow Jones Industrial Average fell 113.52 points, or 0.21 per cent, to end the session at 53,463.88.
Investor sentiment remained restrained after the latest Personal Consumption Expenditures (PCE) price index showed that inflation rose slightly more than expected in July. The core PCE measure, which excludes food and energy prices, was broadly in line with market expectations.
The latest figures have kept the debate over interest-rate cuts firmly in focus. While investors continue to look for signs that the Federal Reserve could ease monetary policy in September, persistent inflation is making the outlook less certain.
The bond market also reflected the cautious mood. US Treasury yields were little changed on Wednesday after declining across maturities in the previous session. The 10-year Treasury yield fell by nearly eight basis points on Tuesday, while longer-term yields have remained elevated.
The 30-year Treasury yield recently reached its highest level in nearly two decades, highlighting concerns about inflation, government borrowing and the possibility that interest rates could remain higher for longer.
Attention is now turning to Nvidia, which is scheduled to announce its second-quarter results after the market closes. Analysts expect the chipmaker to report earnings of about $2.09 per share on revenue of around $92.28 billion, according to FactSet estimates.
Nvidia’s results are being closely watched because of the company’s outsized influence on the technology sector and the broader stock market. Investors will be looking beyond the quarterly numbers for indications of whether demand for artificial intelligence infrastructure remains strong and whether the rapid pace of AI-related investment can continue.
The company’s outlook could be particularly important for technology stocks, which have been a major driver of the broader market’s gains. A strong forecast could reinforce optimism around the AI boom, while any signs of slowing demand could weigh on investor sentiment.
Markets are also preparing for Federal Reserve Chair Kevin Warsh’s address at the central bank’s annual symposium in Jackson Hole, Wyoming, on Friday. Investors will be looking for clues about the Fed’s assessment of inflation, economic growth and the potential path for interest rates.
With the September policy meeting approaching, markets are becoming increasingly sensitive to economic data and comments from policymakers. Investors are now balancing hopes for lower borrowing costs against signs that inflation may remain stubborn.
The combination of inflation data, elevated Treasury yields and upcoming corporate and Federal Reserve developments has left Wall Street without a clear direction. For investors, the focus is likely to remain on whether the coming economic and earnings reports can provide greater clarity on the path for interest rates and the broader US economy.