Nvidia Earnings, Inflation Data, and Jackson Hole Keep Wall Street on Edge

Wall Street traded cautiously on Wednesday as investors weighed mixed inflation data and awaited Nvidia’s earnings, which are seen as a critical test for the AI-driven market rally. The Commerce Department reported that the PCE price index rose 0.2% in July, exceeding economists’ expectations of a 0.1% increase, while core PCE matched forecasts at 0.2%. This rekindled debate over whether the Federal Reserve should hike interest rates, with Fed Chairman Kevin Warsh’s Friday speech at Jackson Hole now under close scrutiny. Nvidia is expected to report 97% sales growth to $92.1 billion and 99% earnings growth to $2.09 per share, with analysts citing strong AI demand and a recent 15% price increase for large customers. Meanwhile, consumer confidence slipped to 89.4 in August, though durable goods orders rose 1.1% in July, beating estimates.