U.S. stocks edged lower on Wednesday as investors digested another stubborn inflation reading and prepared for Nvidia’s highly anticipated quarterly results. The Dow Jones Industrial Average fell 0.2%, while the S&P 500 hovered just below the flat line and the Nasdaq Composite slipped 0.2%.
The muted session followed broad gains on Tuesday, with investors reluctant to make major moves ahead of one of the week’s biggest catalysts. Nvidia shares fell about 1% ahead of its report, while sticky inflation and the approaching Jackson Hole gathering kept interest-rate uncertainty firmly in the spotlight.
Market Movers:
- Biohaven (BHVN) +13% — Shares surged after Biohaven announced a global licensing and collaboration agreement with SK Biopharmaceuticals covering its Kv7 platform. The deal includes potential upfront and milestone payments of up to $795 million, plus royalties on U.S. sales of epilepsy candidate opakalim.
- Summit Therapeutics (SMMT) +5.5% — Shares climbed after partner Akeso reported positive Phase 3 results for ivonescimab combined with chemotherapy in advanced biliary tract cancer. The study was conducted in China and sponsored by Akeso, which generated and analyzed the trial data.
- Semtech (SMTC) +3.2% — Shares advanced after second-quarter earnings and guidance topped expectations, with revenue climbing nearly 33% year over year to $341.9 million. Signal Integrity revenue surged 64% as demand tied to next-generation data-center infrastructure remained strong.
- HEICO (HEI) +2.5% — Shares rose after the aerospace and electronics manufacturer delivered better-than-expected fiscal third-quarter results. Revenue jumped 23% to a record $1.41 billion, supported by strength across commercial aviation, defense and aerospace electronics.
- Spyre Therapeutics (SYRE) -12% — Shares sank after Phase 2 data for rheumatoid arthritis treatment SPY072 produced mixed results. The lower dose met the study’s primary endpoint, but the higher dose failed to do so.
- Intuit (INTU) -11.7% — Shares plunged despite better-than-expected fiscal fourth-quarter results after the company issued disappointing fiscal 2027 guidance. Intuit expects adjusted EPS of $22.88 to $23.12, well below the $27.30 consensus estimate.
- Qfin Holdings (QFIN) -11% — Shares dropped after second-quarter results reflected an industry contraction, tighter regulation and liquidity pressures. Management nevertheless pointed to improvements in its user base, risk models and operating efficiency.
- SAP (SAP) -4.8% — Shares declined after UBS downgraded the software company to Neutral from Buy, citing slower-than-expected progress bringing agentic AI products to customers. Analysts remain constructive on SAP’s core business but see a more limited near-term opportunity to monetize its AI investments.
Sticky Inflation Keeps the Fed in Focus
The Fed’s preferred inflation gauge offered little evidence that price pressures are fading quickly. Core PCE rose 3.3% year over year in July, matching expectations but remaining unchanged from the previous month. That leaves investors facing an uncomfortable mix of persistent inflation and uncertainty over the path of interest rates. Attention now shifts to Jackson Hole, where Fed Chair Kevin Warsh is expected to provide fresh clues about how policymakers are balancing inflation risks against signs of softness elsewhere in the economy.
Nvidia Earnings Put the AI Trade Back Under the Microscope
Nvidia’s results after Wednesday’s closing bell could prove far more consequential for the broader market than the day’s modest index moves suggest. The chipmaker has become a key barometer for AI spending, with investors increasingly demanding evidence that enormous investments in data centers and computing infrastructure can continue generating outsized growth.
Expectations are high, raising the stakes for Nvidia’s outlook as much as its headline earnings numbers. Guidance on AI accelerator demand, hyperscaler spending and the company’s product pipeline could set the tone for semiconductor and other AI-linked stocks heading into the final trading days of August.
Oil Retreats as Hormuz Talks Show Progress
Energy markets offered investors some relief Wednesday after Iran and Oman announced an agreement involving revenues generated from the Strait of Hormuz. Brent crude and West Texas Intermediate prices moved lower as traders weighed the possibility of progress toward restoring shipping through the critical waterway. The details remain limited, however, and Iran has indicated that an agreement would not necessarily mean a full reopening of the strait. Oil therefore remains an important inflation wildcard, particularly with the Fed already confronting persistent underlying price pressures.
Looking Ahead
Nvidia now takes center stage, with its earnings and outlook positioned to test confidence in one of the market’s most important trades. A strong report could reinvigorate semiconductor and AI stocks, while any cracks in demand or guidance could amplify concerns about lofty expectations across the sector. Beyond Nvidia, investors will turn quickly to Jackson Hole and Warsh’s assessment of inflation and interest rates. With core PCE stuck at 3.3%, markets are entering the final days of the week with two major questions: whether AI growth can continue justifying elevated valuations and whether the Fed has any room to turn more accommodative.