US stock indices traded slightly lower as investors awaited Nvidia’s upcoming earnings report while weighing mixed economic data and rising bond yields ahead of the next FOMC meeting.

Key Points

• The S&P 500, Dow Jones, and Nasdaq 100 all saw minor declines as markets braced for Nvidia’s Q2 results.
• July personal spending and income exceeded expectations, while capital goods orders rose less than anticipated.
• The 10-year T-note yield climbed to 4.66% amid increased speculation regarding a potential Federal Reserve rate hike.
• Intuit shares fell over 4% following weak full-year guidance, while J M Smucker rose 3% after beating earnings estimates.
• WTI crude oil prices dropped nearly 1% to a 1.5-week low following reports of potential maritime transit improvements in the Middle East.

Why it Matters

Nvidia’s earnings are widely viewed as the primary barometer for the sustainability of the current AI-driven market rally and corporate capital spending. Investors are closely monitoring these results to determine if the broader S&P 500 earnings growth, currently tracking at 32%, can maintain its momentum amid shifting interest rate expectations.