US Stock Markets Close Lower Ahead of Jackson Hole Symposium and Nvidia Earnings

The Bottom Line

• Macro Pressure: The core personal consumption expenditures (PCE) price index held firm at 3.7 percent year-over-year in July, outpacing economist expectations of 3.6 percent.
• Semiconductor Divergence: Nvidia Corporation (NASDAQ: NVDA) shares dropped 1.6 percent ahead of earnings, while selective peers saw divergent four-percent swings.
• Policy Focus: Markets now turn heavily toward Jackson Hole for definitive guidance on interest rate trajectories.

Decoding the PCE Inflation Print and the Fed Outlook

Wall Street spent the session parsing economic indicators that refused to point in a single direction. The personal consumption expenditures (PCE) price index—the Federal Reserve’s preferred inflation metric—remained flat at 3.7 percent year-over-year through July, according to official data. Consensus estimates tracked by economists had called for a cooling down to 3.6 percent.

With gross domestic product growth figures and factory orders also painting a mixed economic picture, traders are recalibrating risk exposure. Attention has shifted immediately to the annual economic policy symposium in Jackson Hole, where upcoming commentary from Federal Reserve leadership will set autumn liquidity expectations.

Nvidia and the Semiconductor Sector Split

As the market bell approached, Nvidia (NASDAQ: NVDA) shares slid 1.6 percent, giving back a portion of the prior session’s recovery gains. As the undisputed bellwether for artificial intelligence infrastructure spending, the chipmaker’s upcoming financials are being scrutinized for any sign of demand saturation.

“What is really going to matter here is the forward trajectory,” noted Stephanie Niven, portfolio manager at Ninety One, pointing out that absolute growth matters less than the rate of acceleration or deceleration.

The broader semiconductor landscape lacked unified direction during the session. While NXP Semiconductors (NASDAQ: NXPI) and Lam Research (NASDAQ: LRCX) faced downward pressure, names like Western Digital (NASDAQ: WDC), Arm Holdings (NASDAQ: ARM), and Seagate Technology (NASDAQ: STX)* posted gains reaching up to 4 percent.

Index / Asset	Closing Level	Percentage Change
Dow Jones Industrial Average	53.463,88	-0,21%
S&P 500	7.675,70	-0,02%
Nasdaq Composite	26.130,20	-0,08%
Nvidia (NVDA)	–	-1,6%

Software Slumps Meet Retail Outperformance

Beyond the tech hardware space, individual corporate guidance punished software valuations. Intuit (NASDAQ: INTU) shares dropped 3.2 percent after the tax software provider issued a softer-than-expected forward outlook. Similarly, Zoom Video Communications (NASDAQ: ZM) dropped 7 percent following a second-quarter report characterized by mixed execution and uninspiring forward targets.

Conversely, consumer discretionary names bucked the macro gloom. Abercrombie & Fitch (NYSE: ANF) shares surged by more than a third, hitting valuation marks not seen since early 2025. The apparel retailer beat consensus revenue estimates for the quarter and simultaneously upgraded its full-year earnings guidance, proving that selective consumer segments remain resilient despite sticky inflation readings.