On August 26, the New York stock market closed slightly lower as expectations for a Federal Reserve interest rate cut weakened amid higher-than-expected inflation data, while investors awaited Nvidia's earnings report.
The Dow Jones Industrial Average fell 113.52 points, or 0.21%, to close at 53,463.88. The S&P 500 dropped 1.58 points, or 0.02%, to finish at 7,675.70, and the tech-heavy Nasdaq Composite declined 21.10 points, or 0.08%, to end at 26,130.20.
The inflation data released on this day showed that the Personal Consumption Expenditures (PCE) price index for July rose 3.7% year-over-year, slightly above the market expectation of 3.6%. Month-over-month, it increased by 0.2%. However, the core PCE price index, which excludes volatile food and energy prices, met market expectations.
The higher-than-expected inflation figures have contributed to ongoing uncertainty regarding the Fed's future monetary policy. Market participants are closely watching the upcoming speech by Federal Reserve Chair Kevin Warsh scheduled for August 28 at Jackson Hole. However, there are speculations that Warsh may not provide specific signals regarding interest rate direction ahead of the September policy decision.
Investor caution was also evident ahead of Nvidia's earnings report. Amid concerns about a potential bubble in AI investments, Nvidia's results and future outlook will serve as a critical test to determine whether the enthusiasm for AI infrastructure investments is translating into actual demand.
After the market closed, Nvidia reported second-quarter revenue for the fiscal year (May-July) of $96.22 billion, marking a 106% increase from the same period last year and setting a record for quarterly revenue. This figure exceeded the market research firm LSEG's estimate of $92.17 billion by approximately $4 billion.
Additionally, Meta's stock rose 1% following news that the company reached a settlement regarding lawsuits filed by U.S. state governments alleging that it contributed to social media addiction among teenagers.
* This article has been translated by AI.
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