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.
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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."
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Some of the main moves in markets:
Stocks
- The 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
Currencies
- The 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
Cryptocurrencies
- Bitcoin rose 0.4% to $78,497.57
- Ether rose 1.5% to $2,472.87
Bonds
- The 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%
Commodities
- West Texas Intermediate crude fell 0.5% to $81.92 a barrel
- Spot gold fell 1.4% to $4,594.14 an ounce
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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