U.S. Stocks Meandered Ahead of Nvidia's Results and Fed's Inflation Update

Barry Adams
26 Aug, 2026
New York City

Wall Street meandered in early trading on Wednesday ahead of the release of key earnings reports and inflation data. 

The S&P 500 Index decreased 0.06%, and the tech-focused Nasdaq Composite edged down 0.2% as investors debated the future of AI trade ahead of the release of Nvidia's earnings. 

Nvidia is scheduled to release its second quarter results after the close of the regular trading session on Wednesday, and analysts are estimating $2.07 diluted earnings per share on revenue of $92.0 billion, according to an informal survey of three tech analysts conducted by Ticker.com.

Nvidia's earnings are closely monitored by global investors, as the computer chipmaker is the largest member of the S&P 500 Index with 7.43% weight.  

Moreover, the company's revenue growth is also indicative of the capex plans of the hyperscalers and data center operators. 

Investors also reviewed the release of July's personal consumption expenditures price index, the Federal Reserve's preferred measure of overall inflation, which generally understates inflation.   

The alternative measure of inflation, which tracks changes in prices of goods and services, rose an annual 3.7% and monthly 0.2%, compared to June's annual rise of 3.7% and monthly decrease of 0.1%. 

The core rate of inflation, which excludes volatile food and energy prices, held at an annual 3.3% and advanced at a monthly rate of 0.2%, according to the report released by the U.S. Bureau of Economic Analysis.  

The bond market is in focus as the yield on a 30-year Treasury bond jumped to a 19-year high last week, forcing the Treasury Department to announce steps to cool long-term yields.  

 

U.S. Movers 

Zoom Communications decreased 6.3% to $94.61 after the company's current quarter guidance fell short of investor expectations. 

Revenue in the fiscal second quarter ending in July increased to $1.28 billion from $1.22 billion, net income soared to $1.54 billion from $358.6 million, and diluted earnings per share advanced to $5.15 from $1.16 a year ago. 

The latest quarter's net income included net gains from strategic investments of $1.6 billion compared to $45.1 million, and operating income decreased to $314.3 million from $321.7 million a year ago, respectively. 

Enterprise revenue increased 7.8% to $787.5 million from a year ago, and the number of customers contributing $100,000 over the last four quarters increased 8.2%.   

Zoom estimated total revenue in the fiscal third quarter to be between $1.275 billion and $1.280 billion, adjusted operating income to be between $510 million and $515 million, and adjusted diluted earnings per share to range between $1.46 and $1.48.  

Zoom forecast full-year fiscal 2027 revenue to be between $5.085 billion and $5.095 billion, adjusted income from operations to be between $2.065 billion and $2.075 billion, and adjusted diluted earnings per share to be between $6.08 and $6.12.  

Despite the revenue and earnings beats for the quarter, Zoom's stock dropped nearly 7% in after-hours trading due to investor concern over the weak outlook for the current quarter.