Wall Street stocks end tad lower after hot inflation data ahead of Nvidia earnings
By Saeed Azhar, Purvi
Agarwal and Niket
Nishant
Wed August 26, 2026
The headlines say “Hot Inflation Reading” coming in at 3.7%, more than twice the Fed’s target, but that’s not exactly accurate. What really happened is the PCE reading came in completely unchanged from last month which was also 3.7%, meaning inflation didn’t cool at all contrary to hopes. The estimate was for 3.6%. It remains a sticky wicket putting a September rate hike back on the table but with the relatively low odds of 38%. Though it is doubtful that any such announcement is forthcoming in September, if the picture doesn’t improve the Fed may have no choice but to move off the sidelines.
In typical wait-and-see, all the indexes came tumbling down but recovered somewhat in the afternoon. Meanwhile, all eyes will be on Jackson Hole Friday and especially on Nvidia whose report came out after tonight’s bell. Bets are so heavy on Nvidia that a less than stellar report is feared to bring down the whole AI revolution. So Thursday we get to see the market’s reaction to Nvidia, hoping for good news. Other good news is the announcement that Oman and Iran have reached an agreement on the Strait of Hormuz. How that will impact the U.S. is unclear, as well as the U.S. response. As has been the trend recently, volume remains well below the 16.2 average, closing today at 14.2 billion shares.
DJ: 53,577.40 +160.24 NAS: 26,151.30
+171.11 S&P: 7,677.28
+24.42 8/25
DJ: 53,463.88 -113.52 NAS: 26,130.20
-21.10 S&P: 7,675.70
-1.58 8/26
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