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August 26, 2026 - 22:57
4 minutes
(Bloomberg) — Wall Street traders sent stocks wavering in late hours after Nvidia Corp.’s earnings, with caution prevailing as bonds fell on bets the Federal Reserve will raise rates this year.An $809 billion exchange-traded fund tracking the S&P 500 fluctuated after the close of regular trading. Nvidia Corp. fell on a sales forecast that left some investors underwhelmed. Short-dated Treasuries underperformed. Money markets fully priced in a rate hike by December. While a key inflation gauge matched estimates, it was still well above the Fed’s target.Nvidia’s revenue in the current period will be $108 billion, plus or minus 2%, the company said. Though analysts had estimated $105.2 billion on average, some projections exceeded $110 billion, according to data compiled by Bloomberg.Meantime, with investors 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 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 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 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:CrowdStrike Holdings Inc. forecast revenue figures for the full year that exceeded analysts’ estimates, evidence that the cybersecurity industry continues to see demand driven by threats from artificial intelligence. Salesforce Inc. gave an outlook for strong revenue expansion and deepened its partnership with Anthropic PBC, reassuring investors that it can compete successfully in the AI era. HP Inc.’s investors looked past a widely expected boost in the company’s profit forecast and worried about future demand for computers and printers. Meta Platforms Inc. said it agreed to pay up to $18 billion in landmark settlements to resolve social media claims from US states that would require the company to make major changes to how it operates platforms like Facebook and Instagram. 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. Abercrombie & Fitch Co.’s revenue topped estimates and the retailer raised its annual earnings guidance, suggesting the apparel company is regaining momentum. Some of the main moves in markets:StocksThe S&P 500 was little changed as of 4 p.m. New York time The Nasdaq 100 was little changed 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 $1.1653 The British pound fell 0.4% to $1.3594 The Japanese yen fell 0.1% to 159.35 per dollar CryptocurrenciesBitcoin rose 0.4% to $78,497.57 Ether rose 1.5% to $2,472.87 BondsThe yield on 10-year Treasuries advanced two basis points to 4.65% 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 0.5% to $81.92 a barrel Spot gold fell 1.4% to $4,594.14 an ounce ©2026 Bloomberg L.P.
