Futures Remain Little Changed Even After Key Inflation Data

(RTTNews) - Following the modest strength seen in the previous session, stocks may show a lack of direction in early trading on Wednesday. The major index futures are currently pointing to a roughly flat open for the markets, with the S&P 500 futures down by just 0.1 percent.

Traders may be reluctant to make significant moves ahead of the release of AI giant Nvidia's (NVDA) second quarter results after the close of today's trading.

In light of recent concerns about AI spending, Nvidia's results and guidance could have a significant impact on the outlook for the sector.

"Assuming there is no major movement in either a positive or negative direction in geopolitical terms, tonight's second quarter results from Nvidia are likely to set the tone for markets through the remainder of the week," said AJ Bell investment director Russ Mould. He added, "Investors typically assume Nvidia will always beat expectations, so the AI chip giant will have to produce or say something very special to truly impress the market."

The futures remained little changed even after the Commerce Department released a typically closely watched report showing consumer prices in the U.S. increased by slightly more than expected in the month of July.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 in July after edging down by 0.1 percent in June. Economists had expected prices to inch up by 0.1 percent.

The report also said the annual rate of growth by the PCE price index came in at 3.7 percent in July, unchanged from in June. The annual rate of growth was expected to dip to 3.6 percent.

Excluding food and energy prices, the core PCE price index still rose by 0.2 percent in July after inching up by 0.1 percent in June. The increase matched economist estimates.

The annual rate of growth by the core PCE price index was 3.3 percent in July, unchanged from June and in line with expectations.

The Federal Reserve's preferred readings on consumer price inflation were included in the Commerce Department's report on personal income and spending.

Stocks gave back some ground after an early surge but maintained a positive bias throughout the trading session on Tuesday. The major averages all moved to the upside after ending the previous session mixed.

The tech-heavy Nasdaq advanced 171.11 points or 0.7 percent to 26,151.80, the S&P 500 climbed 24.42 points or 0.3 percent to 7,677.28 and the Dow rose 160.24 points or 0.3 percent to 53,577.40.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index, China's Shanghai Composite Index and Hong Kong's Hang Seng Index all climbed by 0.6 percent.

Most European stocks have also moved to the upside on the day. The French CAC 40 Index is up by 0.7 percent and the German DAX Index is up by 0.4 percent, although the U.K.'s FTSE 100 Index is just below the unchanged line.

In commodities trading, crude oil futures are tumbling $2.08 to $80.28 a barrel after plunging $2.65 to $82.36 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,676.70, down $17.80 compared to the previous session's close of $4,715.90. On Tuesday, gold edged down $3.30.

On the currency front, the U.S. dollar is trading at 159.14 yen compared to the 159.16 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1662 compared to yesterday's $1.1674.