BUSINESS

Wall Street holds mostly steady following the latest update on inflation

PUBLISHED Aug 26, 2026, 5:07 PM ET

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U.S. stocks ended nearly flat Wednesday after July inflation remained above expectations, while Treasury yields rose and investors awaited Nvidia’s quarterly results. The Bureau of Economic Analysis said the personal consumption expenditures price index increased 3.7% from a year earlier, unchanged from June and above economists’ 3.6% expectation. Core PCE rose 3.3% annually. Monthly headline and core PCE both increased 0.2%. The S&P 500 fell 0.02% to 7,675.70, the Dow dropped 113.52 points, or 0.21%, to 53,463.88, and the Nasdaq declined 0.08% to 26,130.20. The 10-year Treasury yield reached about 4.65%. Nvidia’s earnings were scheduled after the close, keeping investors cautious amid concerns about elevated AI valuations. Abercrombie & Fitch surged 35.7%, while Intuit fell 3.2% after disappointing forward guidance. The inflation reading modestly strengthened rate-hike expectations, but did not materially alter near-term Federal Reserve forecasts. For now, consumer spending increased 0.2% in July, while real spending was essentially flat.

By Michael Grant | JQJO News

Timeline of Events

On June 30, 2026, PCE inflation remained elevated at 3.7% annually.
On July 30, 2026, June PCE inflation remained 3.7% year-over-year.
On August 26, 2026, BEA reported July PCE inflation at 3.7%.
On August 26, 2026, core PCE remained elevated at 3.3% annually.
On August 26, 2026, consumer spending increased 0.2% during July, according to BEA.
On August 26, 2026, Treasury yields rose as inflation exceeded expectations modestly.
On August 26, 2026, S&P 500 finished nearly unchanged after inflation data.
On August 26, 2026, Nvidia reported quarterly results after regular trading ended.
In coming days, investors will assess Nvidia guidance alongside additional inflation evidence.
In September 2026, Federal Reserve policy decisions will depend on incoming data.
Over coming months, persistent inflation could sustain elevated Treasury yields and borrowing costs.

News Intelligence

Immediate US impact: Sticky inflation keeps markets cautious about interest rates and borrowing costs.
Possible long-term US impact: Persistent inflation could prolong higher rates and pressure asset valuations.
Reader priority: Readers should prioritize primary data, official filings, and independently reported market developments.
Most Affected: Investors, borrowers, businesses, consumers, technology companies, and Federal Reserve policymakers.