US stocks finished Wednesday with limited conviction as investors digested mixed inflation signals and turned their attention toward Nvidia’s latest earnings and guidance. The S&P 500 was essentially flat, while the Nasdaq slipped slightly as traders waited for a fresh catalyst.
The latest Personal Consumption Expenditures (PCE) data showed headline inflation rising 3.7% year over year in July, above expectations. The figures reinforced uncertainty over the Federal Reserve’s interest-rate path and helped keep Treasury yields elevated.
Nvidia Takes Center Stage
Nvidia remains the key catalyst for technology stocks and the broader Nasdaq. The company reported strong fiscal second-quarter results, with revenue and earnings exceeding expectations, while investors focused heavily on forward guidance and margins.
Because Nvidia is such an important component of the major US equity indexes, a strong outlook could provide fresh momentum for the Nasdaq and S&P 500. Conversely, disappointing guidance or concerns about AI spending could trigger renewed selling pressure across technology shares.
Meta Adds Another Variable
Meta shares also attracted attention after the company agreed to an approximately $18 billion settlement with US states related to allegations concerning social-media harms to children. Despite the headline figure, Meta shares gained during Wednesday's session, suggesting investors were not treating the settlement as an immediate threat to the broader market.
Technical Outlook
The Nasdaq's 50-day moving average remains an important technical reference for the next move. Holding above the moving average could help preserve the broader bullish structure, while a decisive break below it would increase the risk of a deeper correction.
For the S&P 500, the market remains close to record levels. Strong corporate earnings and continued AI investment have supported the index, although elevated valuations and uncertainty around Federal Reserve policy remain potential headwinds.
Market Outlook
The next directional move for US equities is likely to depend on the combination of Nvidia's guidance, Federal Reserve expectations and Treasury yields. A strong Nvidia outlook could revive technology-led buying, while persistent inflation and higher yields could limit upside.
For now, traders should watch the Nasdaq's 50-day moving average alongside Nvidia's post-earnings reaction for confirmation of the next major market trend.
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