S&P 500 Edges Lower Despite Favorable NVIDIA Results and Stable Core PCE

The S&P 500 edged lower despite favorable results from NVIDIA, which comfortably beat the market's expectations, while core PCE inflation held steady in July.

The cash session had closed nearly flat hours earlier, at 7,675.70 points, ahead of the quarterly report.

The S&P 500's Cautious Path Into Earnings

NVIDIA carries the single largest weight of any company in the S&P 500, making its quarterly report one of the most consequential single events for the index each year. That outsized influence explains why the benchmark spent Wednesday's session trading in a tight, hesitant range.

The index had climbed 0.32% on Tuesday to 7,677.28, its third straight winning session, as retreating Treasury yields broadly lifted technology shares.

That momentum stalled on Wednesday, with futures slipping modestly in the hours before the report as investors digested the morning's inflation data and positioned defensively ahead of the print.

The core personal consumption expenditures price index, the Federal Reserve's preferred inflation gauge, rose 0.2% month over month and 3.3% year over year in July, exactly in line with economists' expectations. That reading gave the Fed no fresh reason to tighten policy, though it did little to resolve the broader uncertainty weighing on the index.

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