NEW YORK (AP) — The U.S. stock market is drifting after a report said inflation last month and growth for the economy during the spring were a touch worse than economists expected. The S&P 500 edged down by 0.1% Wednesday but remains near its all-time high set earlier this month. The Dow Jones Industrial Average dipped 7 points, and the Nasdaq composite slipped 0.2%. Wall Street is making relatively few big moves ahead of an earnings report coming
from its most influential stock, Nvidia, after trading ends for the day. The bond market is holding relatively steady following some brief swings, while oil prices continue to drop.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
U.S. futures slipped Wednesday before the release of critical inflation and economic growth data, as well as quarterly earnings from Nvidia, the chipmaker that serves as a bellwether in the artificial intelligence sector.
The S&P 500 pointed 0.1% lower before the opening bell. Futures for the Dow Jones Industrial Average futures fell slightly, while Nasdaq futures slipped 0.2%.
Investors will get an important inflation update Wednesday when the U.S. releases its report on July consumer spending, or personal consumption expenditures.
The Federal Reserve’s preferred measure of inflation has remained above 3% since early this year, uncomfortably above the central bank's target.
Also on Wednesday, the Commerce Department will issue its second estimate of U.S. economic growth during the second quarter of this year. The government’s first estimate last month showed that the U.S. economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth.
Markets are giving up ground a day after Canada struck back at the United States with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply. A prolonged dispute could raise costs for American businesses and consumers less than 2½ months before the midterm elections.
Bond yields are also rising, with the 10-year Treasury yield up 0.33% to 4.64% early Wednesday.
Wall Street will be focused on the tech sector Wednesday. Nvidia, one of the winners of the boom in artificial-intelligence technology, will report its quarterly earnings after the market closes. Shares of Nvidia broke out of a seven-day slump Tuesday, but were down slightly before the opening bell.
AI stocks have been extremely volatile for months over growing concerns that the technology won't produce enough profits for companies.
In Europe, France's CAC 40 gained 0.4% to 8,472.40, while the German DAX rose 0.2% to 26,304.94. Britain's FTSE 100 slipped 0.2% to 10,866.35.
Asian markets were higher.
Brent crude, the international standard, dropped 2.4% to $85.17 a barrel. Benchmark U.S. crude fell 2.4% to $80.37 a barrel.
Brent’s price fluctuated between $72 and $102 last month on halting talks between the United States and Iran. But tensions have grown after the Trump administration announced new sanctions this week aimed at inflicting more pain on Iran’s economy.
Top diplomats of Iran and Oman met on Tuesday to discuss a phased approach to managing ship traffic through the Strait of Hormuz. The talks followed an attack off Oman's coast that disabled an oil tanker, underscoring dangers for shipping companies attempting to use the waterway while it’s under Iranian control.
A delegation from Pakistan also held talks with Iran’s president on reviving negotiations to end the Iran-U.S. conflict, the Pakistani military said. Pakistan's Interior Minister Mohsin Naqvi said a meeting with Iranian President Masoud Pezeshkian had been “very positive and productive.”
In currency trading, the U.S. dollar slipped to 159.08 Japanese yen from 159.20 yen. The euro cost $1.1664, down from $1.1675.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
