Wall Street Ends Lower as Inflation Remains Sticky; Nvidia's Blockbuster Results Shine Amid Mixed Commodities

Deep News
08/27

US stocks closed slightly lower on Tuesday, August 27, as the latest PCE price index data indicated that inflation remains elevated. Most popular Chinese stocks fell during the session, with NetEase dropping over 4% while Kanzhun Limited surged more than 15%.

In the commodities market, oil prices edged lower, copper prices retreated, and gold prices declined. European shares were largely flat as investors awaited Nvidia's earnings, though bank stocks gained ground.

Nvidia Corp reported second-quarter revenue of $96.2 billion, up 106% year-over-year and surpassing expectations. Its data center segment brought in $89 billion, marking a 117% increase from the prior year.

On the political front, former President Trump stated there is "no timetable" for Iran's return to negotiations. Trump also confirmed that the CIA director visited Russia. US allies have questioned Trump's claim that the Strait of Hormuz is free of naval mines. Trump's trade actions are impacting key states, putting increased pressure on Republicans ahead of the midterm elections.

Iranian officials said all inspections of attacked nuclear facilities must be approved by the Iranian parliament. Iran's foreign minister condemned US "economic terrorism" against the country. Qatar's foreign minister will visit Iran to discuss mediation efforts and regional tensions. US media reported that Iran allegedly attempted to assassinate Trump's son Barron in the United States.

Meta Platforms has reached a settlement with multiple US states over social media harm cases, potentially paying up to $18 billion. OpenAI released a detailed report on the Hugging Face AI agent hacking incident. Jensen Huang discussed AI investments, saying his "only regret is not starting earlier and investing more." Amazon will purchase 2 million GPUs from Nvidia.

Salesforce reported second-quarter revenue of $11.35 billion, beating expectations, with AI product annualized revenue surpassing $1.5 billion, sending shares up 12% after hours. Okta posted Q2 revenue of $805 million, exceeding estimates, driven by surging demand for AI agent security, with shares jumping 20% in after-hours trading.

Pancreatic cancer treatment achieved a major breakthrough as the FDA approved Revolution Medicines' new drug, nearly doubling median patient survival. HP's Q3 revenue grew 13% and earnings guidance beat expectations, yet shares still plunged as the market focused on PC demand concerns. Anthropic will pay Nscale $45 billion to lease AI computing power.

Apple will release its first foldable phone on September 9. Dick's Sporting Goods shares plummeted, exposing a core challenge facing troubled Nike. IDC predicts Apple's foldable iPhone will ship over 10 million units in its first year. Barclays believes the US Treasury market can absorb larger-scale debt buybacks. US bonds retreated after oil prices stabilized, with a weak 5-year note auction. Investment firm Kimmeridge warned that half of proposed US data centers may face delays or cancellations.

With PCE inflation proving sticky, divisions within the Federal Reserve are widening ahead of the Jackson Hole symposium. Paramount's merger延期 and Warner Bros. Discovery remain in a deadlock. Before the Jackson Hole meeting, the dollar and bond markets are highly tense, with Bessent's market intervention putting significant pressure on Warsh. Bill Gates stated the AI era will be one of the most turbulent periods in human history, criticizing tech companies for downplaying risks.

In other corporate news, Apple will unveil its first foldable device on September 9, while Dick's Sporting Goods' sharp decline highlights a core problem facing struggling Nike. IDC projects Apple's foldable iPhone could ship more than 10 million units in its first year. Barclays noted the US Treasury market can handle larger debt repurchases, and US bonds fell after oil prices stabilized, with a weak 5-year note auction. Investment firm Kimmeridge cautioned that about half of proposed US data centers may face delays or cancellations. PCE inflation remains sticky, intensifying Fed divisions as the Jackson Hole symposium approaches, with Paramount's merger延期 and Warner Bros. Discovery in a stalemate. Bill Gates warned the AI era will be among the most turbulent in human history, criticizing tech firms for downplaying risks.

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