NEW YORK: Wall Street stocks finished lower Wednesday (Aug 26) after US inflation came in steady but elevated as markets traded cautiously ahead of earnings from Nvidia and a widely anticipated Federal Reserve speech.
The S&P 500 finished a hair lower and the Dow slipped 0.2 per cent following a report showing that the personal consumption expenditures price index rose 3.7 per cent in July from a year ago, the same annual increase as in June.
But Wednesday’s PCE inflation data, while stable, remains close to three-year highs.
The United States “still has an inflation problem,” said Heather Long, chief economist at Navy Federal Credit Union.
“The data still gives the Federal Reserve time to wait and see,” she said. “It’s not getting worse, but it didn’t get any better in July either.”
Markets in Paris and Frankfurt closed higher, though well off the session’s highs as oil prices clawed back some losses late in the day. London lagged as energy heavyweights BP and Shell fell.
“Lower energy prices are providing a supportive environment for European markets,” said Fawad Razaqzada, market analyst at FOREX.com. “The resilience of the European economy has been more impressive than many had expected.”
Both main crude oil contracts have fallen this week as Iran and Oman edge towards a deal to open a temporary shipping corridor in the Strait of Hormuz.
But analysts have noted that the details have remained sketchy, including whether there will be a fee to access the waterway.
