Wall Street muted amid mixed PCE data, caution ahead of Nvidia test

U.S. stocks remained largely flat on Wednesday, with a 0.1% decrease in the S&P 500 to 7,672.52 points, a 0.2% drop for the NASDAQ Composite to 26,094.50 points, and a 0.2% decrease for the Dow Jones Industrial Average to 53,458.13 points. Mixed personal consumption expenditures (PCE) data and caution ahead of Nvidia's quarterly results influenced the market mood.

The core PCE rate rose 3.3% Y/Y in July, above expectations, but consumer spending on goods was decreasing. Meanwhile, the U.S. bond market experienced volatility due to inflation concerns and massive debt issuance. The Fed showed increased tolerance for steady interest rates while evaluating additional indicators. Geopolitical tensions in Ukraine also affected oil prices, causing a slight increase in Brent crude futures.

Investors are eagerly awaiting Nvidia's earnings, which could provide insight into the company's future performance and investment plans in AI hardware.