Wall Street futures waver as PCE inflation and Nvidia earnings loom

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Wall Street futures waver

Highlights

S&P 500 and Nasdaq-100 futures slipped, while Dow futures edged higher.
July PCE inflation and Nvidia earnings are Wednesday's main market catalysts.
Nvidia is expected to report roughly $92 billion in quarterly revenue.

S&P 500 futures slipped 0.07% to 7,686.25, while Nasdaq-100 futures fell 0.24% to 29,206.50. Dow Jones futures moved in the opposite direction, gaining 0.07% to 53,685. The mixed performance reflected investor caution ahead of the July PCE inflation report and Nvidia earnings, with Treasury yields and expectations for Federal Reserve policy also shaping sentiment, according to CNBC.

Inflation returns to center stage

Investors are preparing for the July personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge. Economists expect prices to have increased 0.1% from June and 3.6% from a year earlier. The previous report showed a 0.1% monthly decline and a 3.7% annual increase.

The release comes at a sensitive point for the bond market. Long-term Treasury yields climbed sharply last week, with the 30-year yield reaching levels not seen in nearly two decades, before rates retreated on Tuesday. The 10-year yield fell by almost eight basis points during that session.

That pullback helped equities. The S&P 500 finished Tuesday 0.3% higher, the Nasdaq Composite gained 0.7%, and the Dow added 160.24 points, or 0.3%, extending its winning streak to three sessions.

A softer inflation reading could reinforce expectations that price pressures are easing and relieve some of the recent pressure on bonds. An upside surprise would put yields and richly valued growth stocks back under scrutiny.

Nvidia faces a $92 billion test

Nvidia will provide the other major test after Wednesday's closing bell. Wall Street expects adjusted earnings of about $2.09 a share and quarterly revenue of roughly $92 billion to $92.3 billion, which would represent an increase of about 96% from a year earlier.

Data center revenue is projected at approximately $85.4 billion, up 107%. Sales to hyperscale customers are expected to reach about $43.5 billion, while Nvidia's other AI infrastructure customers are projected to contribute roughly $41.7 billion.

Those numbers carry unusual weight for the broader market. Nvidia has a market capitalization above $5 trillion and is the largest member of the S&P 500, making substantial moves in its shares capable of influencing the major indexes.

Two tests for the market rally

Wednesday puts two of Wall Street's dominant themes under examination at once. Inflation will shape expectations for Treasury yields and Federal Reserve policy, while Nvidia will test whether extraordinary spending on artificial-intelligence infrastructure continues to justify technology valuations.

Attention will then shift toward Fed Chair Kevin Warsh's Jackson Hole speech on Friday. With markets balancing inflation risks, elevated long-term yields, and expectations for continued AI growth, the combination of PCE data and Nvidia results could determine whether Tuesday's advance develops into broader momentum or gives way to renewed volatility.

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