US Stocks Dip as Nvidia Beats Expectations and Inflation Rises

Major U.S. stock indexes closed modestly lower on Wednesday as investors adopted a cautious stance. The Dow Jones Industrial Average fell 0.21% to close at 53,463.88, while the S&P 500 and Nasdaq Composite saw marginal declines. Market participants focused on data from the Bureau of Economic Analysis showing the personal consumption expenditures price index rose 0.2% in July, maintaining an annual inflation rate of 3.7%, which exceeded the Federal Reserve's target.

Nvidia reported record quarterly sales that beat analyst expectations after the closing bell, yet its stock fell 1.1% in aftermarket trading as investors scrutinized guidance on artificial intelligence spending. Traders are now awaiting a speech by Federal Reserve Chairman Kevin Warsh at the Jackson Hole economic symposium this Friday for further guidance on interest rate policy.

In corporate developments, Meta Platforms Incorporated agreed to an $18 billion settlement with 48 state attorneys general to resolve claims regarding social media's harm to teenagers, causing its shares to rise 1.1%. The Vanguard Group announced a $4 billion acquisition of the fintech platform Altruist, and the Food and Drug Administration granted commercial approval for a pancreatic-cancer pill from Revolution Medicines. In commodities, oil futures declined amid reports that Oman and Iran are negotiating the reopening of the Strait of Hormuz.