Nvidia Earnings, PCE Inflation Data Keep Markets on Edge

US stock markets remained cautious on Wednesday as investors awaited Nvidia earnings and fresh PCE inflation data, two key events expected to influence market sentiment and expectations for Federal Reserve interest-rate policy. US stock futures remained largely subdued ahead of the closely watched releases.

Futures linked to the Dow Jones Industrial Average were marginally higher, while S&P 500 futures were broadly flat and Nasdaq 100 futures edged lower. Wall Street had ended the previous session higher, supported by gains in artificial intelligence stocks, falling oil prices and a rally in US government bonds. The focus was firmly on Nvidia, whose quarterly results were due after the closing bell. The chipmaker has emerged as a major AI industry bellwether because its advanced processors power data centres and artificial intelligence applications worldwide.

According to estimates cited in the report, Nvidia’s quarterly revenue is expected to reach about $92.18 billion, roughly double the figure recorded a year earlier. Investors are also expected to scrutinise the company’s outlook for its next-generation Vera Rubin processors and demand for its Blackwell chips. Concerns over the sustainability of massive AI infrastructure spending have increased as major technology companies face pressure on free cash flow.

Meanwhile, markets were awaiting the US PCE price index, the Federal Reserve’s preferred measure of inflation. Core PCE inflation was expected to rise 0.2% month-on-month in July, compared with 0.1% previously, while the annual rate was forecast at 3.3%.

The inflation figures could influence expectations for the Federal Reserve interest rate decision in September. Persistent price pressures, particularly those linked to higher energy costs, could complicate the central bank’s policy outlook. Oil prices also remained in focus as reports of diplomatic efforts involving the US and Iran raised hopes of progress toward reopening the Strait of Hormuz. Brent crude prices fell sharply amid the developments.

Adding to global market uncertainty, Canada-US trade tensions intensified after Ottawa announced plans for retaliatory tariffs on hundreds of American products. Together, Nvidia’s results, inflation data, oil prices and geopolitical developments were expected to remain major global market drivers in the coming sessions.