US stocks traded little changed heading into NVDA earnings after the close, with sectors mixed as Industrials, Tech, and Utilities led the gains, while Healthcare and Communications underperformed. For comms, slight weakness in Alphabet was enough to offset the gains in Meta following the latter's settlement in the US case on social media harm to children, which helps clear some of the uncertainty overhang (to pay a max of USD 16.68bln). There were several releases, with the dollar and US yields rising on the day in response to the PCE report, in which the core readings matched expectations, but the headline printed slightly above forecasts at 0.2% M/M (exp. 0.1%) and 3.7% Y/Y (exp. 3.6%). Despite the rise in US 2yr yields, money market bets on Fed policy were little changed for the September meeting, still pricing a 60% chance of a hold. Meanwhile, US GDP was unrevised at 1.5% in Q2 on the second estimate, with increases seen in consumer spending, exports, and investment; durable goods beat in July, supporting the theme of solid investment.USD was bid on somewhat hot-leaning PCE report in which Core printed in line with expectations of 0.2% M/M and 3.3% Y/Y, but the headline was firmer than expected at 0.2% M/M (exp. 0.1%) and 3.7% Y/Y (exp. 3.6%). Other US data releases included GDP, which rose 1.5% in Q2 (unrevised from the advance figure), driven by increases in consumer spending, exports, and investment, while Durable Goods beat in July.Looking ahead, highlights include Australian Capital Expenditure, Chinese Industrial Profits, BoK Rate Decision.More Newsquawk in 2 steps:1. Subscribe to the free premarket movers reports2. Trial Newsquawk’s premium real-time audio news squawk box for 7 daysLOOKING AHEADHighlights include Australian Capital Expenditure, Chinese Industrial Profits, BoK Rate Decision.Click for the Newsquawk Week Ahead.IRAN CONFLICTUS President Trump said he is "not in a hurry" over talks with Iran and that there is no time schedule, while he added that economic and military action are effective, according to Al Jazeera.US President Trump said he does not think Iran's Ayatollah is dead but thinks he is seriously wounded, while he reiterated that the Hormuz blockade is working and suggested that 22 ships passed through the Strait of Hormuz on Tuesday night.US President Trump said the Strait of Hormuz is functioning and that a lot of oil is pouring out of Hormuz, while he added that 10mln barrels of oil left Hormuz on Tuesday and prices are coming down.US President Trump posted an AI image of himself in front of former Iranian Supreme Leader Khamenei with the caption "mission accomplished".US envoys Steve Witkoff and Jared Kushner, who have been leading the negotiations with Iran, were visiting US Central Command in Tampa on Wednesday for briefings on the situation on the ground, according to Axios citing a source.US Energy Secretary said Washington favours a diplomatic dialogue with Iran.US reportedly made some progress clearing sea mines in international waters, however an Iranian estimate suggested 80-150 mines it deployed remain uncleared.US considers reviving "War-Spoils" court in order to claim Iranian oil, according to reports.Iranian President Pezeshkian said Iranians will not back down in the war with the US, according to Al Jazeera. It was separately reported that Iranian President Pezeshkian and Russian President Putin will meet on the sidelines of the upcoming Shanghai Cooperation Organization summit in Kyrgyzstan (31st Aug-1st Sep), according to Iran International.Iranian nuclear chief said Iran remains in a wartime situation as nuclear sites are not secured for inspections, while he stated the IAEA cannot request an inspection until a protocol is drawn up and that Trump’s threats to bomb the alleged secret Iranian nuclear site show how international organisations are pawns of the US and Israel.Iranian army spokesperson Akraminia said in a possible future war, new issues could be raised, such as regional energy infrastructure, while Iranian senior spokesperson of the armed forces said foreign media are considered military targets.Iranian army said areas east of the Strait of Hormuz, north of the Indian Ocean, the Arabian Sea, and the Oman Sea are under their operational control, according to Al Jazeera. It also stated that ships are under surveillance hundreds of kilometres before they reach the Strait of Hormuz and can cross if they get permission.Iran reiterated that Hormuz will remain closed unless the US accepts its terms of the MOU, while the IRGC said Iran and Oman agreed on the share of Hormuz revenues, but added that US interference is delaying implementation.Iranian senior official said that an agreement with Oman on the Strait of Hormuz has not yet been finalised and that they are still working on an agreement over the Strait of Hormuz, according to sources.Qatar's PM and Foreign Minister is reportedly to visit Tehran imminently, according to Tasnim. A separate report noted that the Qatari PM/FM is expected to arrive in Tehran on Thursday in order to try to promote something in the stalled negotiations between Washington and Tehran, according to an Israeli journalist.Israeli PM Netanyahu said it is not possible to reach a diplomatic agreement with Iran.Israel and Lebanon negotiations in Italy will restart in September, according to Ynet citing sources.US Ambassador to Lebanon said "there is progress in the pilot areas, but what is on paper requires time for implementation", according to Al Hadath.US TRADEUS stocks traded little changed heading into NVDA earnings after the close, with sectors mixed as Industrials, Tech, and Utilities led the gains, while Healthcare and Communications underperformed. For comms, slight weakness in Alphabet was enough to offset the gains in Meta following the latter's settlement in the US case on social media harm to children, which helps clear some of the uncertainty overhang (to pay a max of USD 16.68bln). There were several releases, with the dollar and US yields rising on the day in response to the PCE report, in which the core readings matched expectations, but the headline printed slightly above forecasts at 0.2% M/M (exp. 0.1%) and 3.7% Y/Y (exp. 3.6%). Despite the rise in US 2yr yields, money market bets on Fed policy were little changed for the September meeting, still pricing a 60% chance of a hold. Meanwhile, US GDP was unrevised at 1.5% in Q2 on the second estimate, with increases seen in consumer spending, exports, and investment; durable goods beat in July, supporting the theme of solid investment.SPX -0.02% at 7,676, NDX +0.05% at 29,225, DJI -0.21% at 53,469, RUT -0.14% at 3,006.Click here for a detailed summary.TARIFFS/TRADEUS President Trump said regarding Canada that they don't have anything that we have to have and "we can get by" without Canada.German Chancellor Merz said he has asked the cabinet to work on proposals for EU trade with China.NOTABLE HEADLINESUS President Trump’s administration is unveiling a new proposal aimed at turning the nation’s highway and rail lines into “multi-use” utility corridors that could hold critical infrastructure, according to Semafor.US President Trump said he will look at regulations for beef processing plants and noted that beef prices are starting to come down.US House GOP leaders are aiming to put a Senate-passed stopgap spending bill on the floor early next week, in the first days back in session after a five-week recess, according to Politico citing sources.NVIDIA (NVDA) Q2 2026 (USD): Adj. EPS 2.22 (exp. 2.09), Revenue 96.2bln (exp. 92.3bln)DATA RECAPUS GDP Growth Rate 2nd Est (Q2 QQ) rose to 1.5% (exp. 1.5%, prev. 2.1%).US GDP Sales 2nd Est (Q2 QQ) rose to 2.2% (exp. 2.2%, prev. 1.9%).US GDP Price Index 2nd Est (Q2 QQ) rose to 6.4% (exp. 6.3%, prev. 3.6%).US PCE Prices 2nd Est (Q2 QQ) rose to 5.3% (exp. 5.1%, prev. 4.6%).US Core PCE Prices 2nd Est (Q2 QQ) rose to 3.6% (exp. 3.4%, prev. 4.4%).US PCE Price Index (Jul MM) rose to 0.2% (exp. 0.1%, prev. -0.1%).US PCE Price Index (Jul YY) rose to 3.7% (exp. 3.6%, prev. 3.7%).US Core PCE Index (Jul MM) rose to 0.2% (exp. 0.2%, prev. 0.1%).US Core PCE Index (Jul YY) was 3.3% (exp. 3.3%, prev. 3.3%).US Personal Income (Jul MM) rose to 0.4% (exp. 0.2%, prev. 0.2%).US Personal Spending (Jul MM) rose to 0.2% (exp. 0.1%, prev. 0.3%).US Durable Goods Orders (Jul MM) rose to 1.1% (exp. 0.5%, prev. 0.3%).FXUSD was bid on somewhat hot-leaning PCE report in which Core printed in line with expectations of 0.2% M/M and 3.3% Y/Y, but the headline was firmer than expected at 0.2% M/M (exp. 0.1%) and 3.7% Y/Y (exp. 3.6%). Other US data releases included GDP, which rose 1.5% in Q2 (unrevised from the advance figure), driven by increases in consumer spending, exports, and investment, while Durable Goods beat in July.EUR weakened but with downside cushioned by support around the 1.1650 level and with the single currency kept to within a narrow range amid a lack of major catalysts and data releases for the bloc.GBP was among the underperformers and slipped beneath the 1.3600 handle.JPY saw two-way trade, as USD/JPY oscillated around the 159.00 level before edging higher on the US data.SNB’s Martin said he'd prefer Swiss banks to maintain robust capital buffers and take market share from foreign banks that may face difficulties during the next downturn.FIXED INCOMET-notes settled lower and Treasury yields rose across the curve following the somewhat hot-leaning US PCE data and as oil prices pared overnight losses.COMMODITIESOil prices settled little changed in choppy trade as headlines included both escalatory and de-escalatory geopolitical updates, while the weekly headline crude inventory change was relatively flat.US EIA Crude Oil Stocks Change (Aug/21) +0.1M (exp. 0.6M, prev. 4.4M).Japanese PM Takaichi said they are considering incentives for firms to diversify fuel sources. Takaichi separately commented that the **Cabinet took measures as part of its emergency response, including the decision to release stockpiles ahead of the rest of the world.Indian tanker "HAANA" was planning to pass through the southern route of the Strait of Hormuz known as the Oman Corridor, but was warned to stop, according to Mehr News.Russia's Norsi oil refinery reportedly halted operations following an earlier drone attack.GEOPOLITICALRUSSIA-UKRAINERussian President Putin is reportedly planning Ukraine escalation and sees talks as fruitless, according to Bloomberg TV.Russia's Kremlin said it is currently impossible to determine whether the crisis in US-Russia relations can be overcome and that there is no current plan for any contact with a senior US representative.OTHERUS Justice Department said that the DoJ and FBI seized platforms operated and used by China state-sponsored hackers to target US critical infrastructure.ASIA-PACNOTABLE HEADLINESJapan's Ministry of Justice has finalised its request of over JPY 80.7bln in its budget estimate, which is more than double this year's initial budget, according to NHK.EU/UKNOTABLE HEADLINESUK PM Burnham said that he will not tax wealth creators out of the UK, pledging to "take pressure off" businesses, and wants to "add percentage points" to the UK's growth rate, while he did not comment on whether business taxes would rise in the October Budget, according to FT.UK households are unlikely to receive further energy bills support before the October price cap, though more targeted measures could be looked at if there is a further shock in January, according to The Guardian citing sources.German Chancellor Merz said he expects no change to Germany's top credit rating and that they have absolutely no difficulty refinancing on the capital markets. He added that Germany has a chance to see GDP growth of 1% or above in 2027 and noted regarding planned pension reform that all incentives for early retirement must be avoided.German Finance Minister said Germany needs to reduce dependence on the US and Silicon Valley, while he noted that after one year, EUR 50bln of the EUR 500bln special budget has already been allocated, and stated that turmoil being seen in bond markets is related to the Iran war.Loading...