27th August 2026
🌍The market Story
US stocks finished almost flat (even) on Wednesday as slightly hotter inflation kept investors cautious, even though the wider economy still looked reasonably strong. After the close, Nvidia delivered a major beat: revenue more than doubled, guidance came in above expectations, and the company said it expects AI demand to remain extremely strong for years. Shares rose almost 5% after hours.
Meanwhile, oil has fallen back toward $87 and the 10-year Treasury yield is around 4.65%, giving markets some breathing room.
Nvidia has passed the AI test. Now the focus shifts back to inflation and whether borrowing costs can stay under control.
📊 Market Snapshot
US Markets:
Index | Close | Daily Move |
|---|---|---|
S&P 500 | 7,675.70 | −0.02% |
Nasdaq | 26,130.20 | −0.08% |
Dow Jones | 53,463.88 | −0.21% |
Russell 2000 | 3,005.90 | −0.14% |
Market Takeaway: Stocks were almost flat as slightly hotter inflation kept investors cautious ahead of Nvidia’s earnings.
Key Markets:
Gold: $4,620 per ounce
Gold remains strong despite firmer inflation data
Oil: $87.20 per barrel
Oil has fallen sharply from last week’s mid $90s levels.
Bitcoin: $78,800
Bitcoin remains sharply higher for August despite recent volatility.
Dollar: The dollar is near its strongest level in about a week after hotter inflation increased expectations that US rates may stay high.
📟 Nvidia results
Nvidia delivered another very strong quarter, with revenue of $96.2 billion, above expectations, while data-center revenue reached $89 billion as demand for AI chips remained extremely strong.
The bigger positive was guidance. Nvidia expects around $108 billion in revenue next quarter, ahead of forecasts, and said it still sees very strong growth in the years ahead.
Why it matters:
Investors were worried that the AI spending boom might be starting to slow. Nvidia’s results suggest demand is still growing quickly and that big tech companies are continuing to spend heavily on AI infrastructure.
Market takeaway:
The AI demand story is still intact.
📊 PCE (inflation results)
July PCE inflation came in slightly hotter than expected, with headline inflation at 3.7% year over year and core inflation at 3.3%.
That is not a major inflation shock, but it does show that price pressures are not falling as quickly as markets had hoped.
Why it matters:
PCE is the Fed’s preferred inflation measure. If inflation stays above target, the Fed has less reason to cut rates and may keep borrowing costs high for longer.
The slightly hotter reading also pushed up expectations for another rate hike later this year.
Market takeaway:
Inflation is not running away again but it is proving stubborn enough to keep interest rates and bond yields a key risk for stocks.
Biggest Winners 📈 & Biggest Losers 📉
Winners -
📈 Nvidia: +5% after hours
Shares jumped after Nvidia beat revenue expectations and gave stronger-than-expected guidance, reinforcing confidence that AI demand remains very strong.
📈J.M. Smucker: +4.3%
Smucker rose after giving a better-than-feared sales outlook.
Why it moved:
Investors reacted positively to signs that the company’s slowdown may not be as severe as expected.
Losers -
📉 Moderna: −5.8%
Moderna fell as investors continued taking profits after its huge cancer-vaccine-driven rally.
Why it moved:
The drop looked more like profit-taking than a reversal of the positive clinical story.
📉 Intuit: −3.2%
Intuit fell after its annual revenue outlook disappointed investors.
Why it moved:
The company’s guidance came in below what Wall Street had hoped for.
Market takeaway:
Wednesday was mostly a quiet session, with investors waiting for Nvidia rather than making big moves across the market.
⚠️ Key Risks
1. Inflation stays stubborn
PCE came in slightly hotter than expected, with headline inflation at 3.7% and core at 3.3%.
Why it matters:
If inflation refuses to cool, the Fed may keep rates high for longer or even hike again, which would put pressure on stocks.
2. Oil and bond yields turn higher again
Brent has fallen back toward $87 and the 10-year Treasury is around 4.65%, giving markets some relief.
Why it matters:
If oil rebounds and yields climb at the same time, inflation fears and borrowing costs could quickly put pressure back on stocks.
3. Nvidia’s margin pressure becomes the next concern
Nvidia’s demand outlook was very strong, but the company expects margins to fall as memory and other component costs rise.
Why it matters:
The AI story is still strong, but investors will want to see that huge revenue growth continues to translate into equally strong profits.
👀 What To Watch Today
1. Nvidia’s market reaction
Nvidia was up around 5% after hours following its results.
Why it matters:
The key is whether those gains hold during normal trading and spread into other chip and AI stocks.
2. Treasury yields and oil
The 10-year Treasury is around 4.65% and Brent is near $87.
Why it matters:
If both stay contained, the market gets more breathing room. If they turn sharply higher, pressure could return quickly.
3. Market breadth
Watch whether the rally broadens beyond Nvidia and the biggest technology names.
Why it matters:
A stronger market would see small caps, industrials and other sectors join in rather than relying on one stock.
Bottom Line
Nvidia delivered the kind of results the market wanted, keeping the AI growth story firmly intact.
Oil down. Yields down.
Three really good signs for the market but the concerns remain around inflation.