This content was published on
August 26, 2026 - 21:00
4 minutes
(Bloomberg) — Wall Street refrained from making big bets on stocks before Nvidia Corp.’s earnings, with caution prevailing as bond yields rose amid speculation the Federal Reserve will raise rates this year.In the countdown to the chipmaker’s results, the shares dropped 1%. The S&P 500 wavered. Short-dated Treasuries underperformed. Money markets fully priced in a Fed hike by December on signs the economy remains strong. A key inflation gauge matched estimates, but it’s still above the central bank’s target. Oil whipsawed on news Russia is moving to escalate the war in Ukraine.Investors are eagerly awaiting Nvidia’s numbers for clues on what they mean to the artificial-intelligence trade and the market itself. Analysts project that revenue nearly doubled from a year ago, which would be the fastest pace in two years, according to data compiled by Bloomberg.“With expectations already elevated, investors will be watching forward guidance, margins, demand durability, and the company’s expanding investment strategy for signs that the structural AI growth story remains intact,” said Jack Ablin at Cresset Capital Management.Meantime, with markets remaining sensitive to anything that could boost the odds of higher rates, the latest economic numbers weren’t necessarily what they wanted to see, according to Ellen Zentner at Morgan Stanley Wealth Management.The core personal consumption expenditures price index, which excludes food and energy items, advanced 3.3% in July from a year earlier. Separate data showed the US economy expanded at an unrevised 1.5% pace in the second quarter, though underlying details showed stronger consumer spending and business investment than initially reported.The data wasn’t enough to shift the balance for the September Fed meeting, but if subsequent figures point in the same direction, policymakers may feel more pressure to move off the sidelines, Zentner noted.“The challenge is becoming increasingly clear: Inflation is still too high for comfort, and investors will be watching to see whether Fed Chair Kevin Warsh uses Friday’s Jackson Hole speech to address how policymakers plan to bring it back toward the Fed’s long-term target,” said Bret Kenwell at eToro.An inflection point may be approaching, but consumers continue to benefit from income growth that’s outpacing inflation, according to Jeff Roach at LPL Financial.“For policymakers, the balance of risks still tilts toward inflation,” he said. “If geopolitical tensions ease in the near term, core inflation could fall below 3%, giving investors a reason for optimism.”Corporate Highlights:Meta Platforms Inc. said it agreed to pay up to $18 billion in landmark settlements to resolve allegations from multiple US states that the company deliberately designed Facebook and Instagram to encourage compulsive use among young users. Anthropic PBC has agreed to spend $45 billion to rent AI cloud computing power from Nscale’s flagship data center development in West Virginia, the latest move in an effort to secure capacity for its expanding business in advance of going public. Zoom Communications Inc. gave a sales outlook for the current quarter that was about in line with analysts’ estimates, disappointing investors hoping for a greater uplift from its expanded suite of products. Abercrombie & Fitch Co.’s topped estimates and the retailer raised its annual earnings guidance, suggesting the preppy apparel company is regaining momentum. JM Smucker Co. raised its full-year outlook for sales and profit, bolstered by growth in its Uncrustables sandwiches and coffee brands. Some of the main moves in markets:StocksThe S&P 500 was little changed as of 3 p.m. New York time The Nasdaq 100 rose 0.1% The Dow Jones Industrial Average fell 0.2% The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1652 The British pound fell 0.4% to $1.3593 The Japanese yen fell 0.1% to 159.39 per dollar CryptocurrenciesBitcoin rose 0.3% to $78,429.4 Ether rose 1.4% to $2,471.18 BondsThe yield on 10-year Treasuries advanced four basis points to 4.66% Germany’s 10-year yield advanced three basis points to 3.23% Britain’s 10-year yield advanced four basis points to 5.03% CommoditiesWest Texas Intermediate crude fell 0.4% to $82.02 a barrel Spot gold fell 1.3% to $4,597.71 an ounce ©2026 Bloomberg L.P.
