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August 26, 2026 - 03:52
5 minutes
(Bloomberg) — US equity-index futures dropped as investors turned cautious before Nvidia Corp.’s earnings, with the results set to test confidence in the artificial intelligence trade. Asian bonds rose as oil extended its decline.Futures contracts for the Nasdaq 100 Index fell 0.5%, with chip bellwether Nvidia set to announce quarterly earnings later Wednesday. S&P 500 futures also slipped. MSCI’s Asia Pacific equities gauge rose 0.3%.Brent fell 2.5% to around $86.35 a barrel as Iran and Oman discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz. Crude’s 8.5% decline this week has eased inflation concerns, helping government bonds rally.Treasuries held gains from Tuesday, when the benchmark 10-year yield fell seven basis points. Government bonds in Japan, Australia and New Zealand all advanced.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,” Kyle Rodda, a senior analyst at Capital.com, wrote in a note.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.Gold slipped 0.3% to $4,645 an ounce, snapping a five-day rally. Bitcoin held around $78,400.The AI 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.“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. Meta Platforms Inc. and state attorneys general have discussed a possible mid-trial settlement of a blockbuster case accusing the company of deliberately designing Facebook and Instagram to addict teens, according to people familiar with the matter Some of the main moves in markets:StocksS&P 500 futures fell 0.3% as of 10:50 a.m. Tokyo time Nikkei 225 futures (OSE) fell 0.4% Japan’s Topix rose 0.2% Australia’s S&P/ASX 200 rose 0.1% Hong Kong’s Hang Seng rose 1% The Shanghai Composite rose 0.4% Euro Stoxx 50 futures were little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1670 The Japanese yen was little changed at 159.06 per dollar The offshore yuan was little changed at 6.7194 per dollar CryptocurrenciesBitcoin rose 0.8% to $78,831.13 Ether rose 0.8% to $2,455.36 BondsThe yield on 10-year Treasuries advanced one basis point to 4.64% Japan’s 10-year yield declined 1.5 basis points to 2.875% Australia’s 10-year yield was little changed at 5.02% CommoditiesWest Texas Intermediate crude fell 2% to $80.69 a barrel Spot gold fell 0.1% to $4,651.08 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.
