Wall Street holds mostly steady following the latest update on inflation

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.