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August 26, 2026 - 02:07
5 minutes
(Bloomberg) — US equity-index futures edged lower as investors turned cautious before Nvidia Corp.’s earnings, with the results set to test confidence in the artificial intelligence trade. Oil extended its decline, easing inflation concerns.Contracts for the Nasdaq 100 Index dropped 0.3%, and those for the S&P 500 Index edged 0.1% down. MSCI’s Asia Pacific equities gauge was little changed with benchmarks in Japan and South Korea fluctuating between gains and losses.Elsewhere, Brent fell 1.7% to trade around $87 a barrel as Iran and Oman discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz. Lower oil prices helped push 10-year Treasury yields down seven basis points to 4.63% on Tuesday.Gold held its gains from a five-day rally, trading little changed around $4,655 an ounce, while Bitcoin held around $78,500.The retreat in oil offered some relief to markets after persistent inflation and elevated yields had weighed on risk appetite. Three key events may shape trading this week — Nvidia’s results on Wednesday for clues on whether the AI rally can regain momentum, the release of the US PCE gauge and Federal Reserve Chair Kevin Warsh’s Jackson Hole speech on Friday for signals on the path of interest rates.“Although the mountain of event risk is casting a slight shadow over the markets, the easing of geopolitical risks and subsequently lower oil price has been enough to offset the trepidation,” wrote Kyle Rodda, a senior analyst at Capital.com.In other corners of the market, the Canadian dollar was steady after Canadian Prime Minister Mark Carney matched new tariffs imposed by President Donald Trump and announced support for businesses hurt by the escalating trade dispute with the country’s largest trading partner.The US is weighing more trade measures against Canada over the retaliation.The main event for equity traders Wednesday will be Nvidia’s earnings after a spate of strong results failed to prevent investors from selling shares of AI companies. The trade has come under pressure recently as investors question whether the billions of dollars being spent on the technology will generate commensurate returns.Analysts estimate Nvidia’s revenue nearly doubled from a year earlier to $92 billion last quarter, more than any of its rivals generate in a full year. The results will offer a key test of whether the AI boom can sustain the earnings expectations underpinning technology valuations.“Nvidia is operating on all cylinders and they’re doing absolutely everything correctly at this point,” said Mark Malek at Siebert Financial. “We’re anticipating good news here, but so is everybody.”Attention will then shift to the annual Jackson Hole Symposium on Friday, where Warsh will deliver his first major speech as Fed chair. Investors will be looking for greater clarity on his assessment of the economy and the path for monetary policy.Data Tuesday showed US consumer confidence fell to a seven-month low in August as the outlook for business conditions and the labor market deteriorated. On Wednesday, investors will turn to the US personal consumption expenditures price index — the Fed’s preferred inflation gauge.“Consumers are optimistic about today but increasingly nervous about tomorrow,” said Jeffrey Roach, chief economist at LPL Financial. “Although employment conditions remain solid, fading expectations for income growth may act as a headwind to spending.”Corporate Highlights:OpenAI said its new Jalapeno chips performed better than Nvidia’s current lineup during testing, underscoring progress developing AI processors in-house. SpaceX plans to build a new $100 billion launch site for its Starship rocket on the southern coast of Louisiana, allowing the company to expand operations of the behemoth vehicle that’s critical to its future. Apple Inc. announced upgraded Mac mini and Mac Studio desktop computers, giving the in-demand machines major processor upgrades. Some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 9:04 a.m. Tokyo time Hang Seng futures rose 0.4% Japan’s Topix was little changed Australia’s S&P/ASX 200 rose 0.3% Euro Stoxx 50 futures rose 0.1% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1674 The Japanese yen was little changed at 159.23 per dollar The offshore yuan was little changed at 6.7176 per dollar The Australian dollar was little changed at $0.7164 CryptocurrenciesBitcoin rose 0.5% to $78,569.77 Ether rose 0.3% to $2,443.3 BondsThe yield on 10-year Treasuries was little changed at 4.63% Australia’s 10-year yield declined three basis points to 4.99% CommoditiesWest Texas Intermediate crude fell 1.5% to $81.09 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
