Wall Street flat as Nvidia earnings loom, hot inflation lifts rate-hike bets

Wall Street opened flat on Wednesday as investors awaited Nvidia's earnings report, while hotter-than-expected inflation data increased bets on a September Federal Reserve rate hike. Annual U.S. inflation rose 3.7% in July, slightly above the 3.6% forecast, and the economy grew 1.5% in the second quarter. Fed funds futures now show a 44% chance of a September rate increase, up from 36% before the data. Nvidia shares fell 0.4% ahead of its quarterly report, with analysts warning a weak result could undermine the AI boom. Other notable movers included Intuit, which dropped 4% on a weak forecast, and J.M. Smucker, which gained 4%.