Today’s Stock Market in 2-Minutes

By Alex Financials

Published: August 26, 2026

Stock Market Today: Wall Street Waits for Nvidia

U.S. stocks are facing a major test on Wednesday as investors balance three powerful forces: Nvidia’s highly anticipated earnings report, fresh inflation data and changing expectations for Federal Reserve policy.

The S&P 500, Dow Jones Industrial Average and Nasdaq were little changed to slightly lower around the market open, reflecting the caution surrounding Nvidia’s results after the closing bell. Nvidia’s results have become one of the most important events of the earnings cycle because the company sits at the center of the artificial intelligence investment boom. (Reuters)

At the same time, investors received the latest reading on the Federal Reserve’s preferred inflation gauge. The July Personal Consumption Expenditures price index showed inflation remaining elevated, reinforcing questions about whether the Fed will have enough room to cut interest rates at its September meeting. (Bureau of Economic Analysis)

The result is a market caught between strong corporate growth expectations and a still-challenging interest-rate environment.

$NVDA Earnings Could Set the Tone for the Market

The biggest event on Wednesday is Nvidia’s fiscal second-quarter earnings report, scheduled for after the market closes.

Wall Street expects Nvidia to report roughly $92 billion in quarterly revenue, representing growth of nearly 100% from a year earlier. Analysts are also looking for earnings of approximately $2.09 per share. (Kiplinger)

Those numbers illustrate just how high the bar has become.

Nvidia has repeatedly exceeded analyst expectations, but its stock has also struggled to maintain gains following several previous earnings releases. That creates an unusual situation in which a strong earnings beat may not necessarily be enough to push the stock higher if investors were expecting an even stronger outlook. (Yahoo Finance)

The most important part of today’s report may therefore be management’s outlook for AI infrastructure spending.

Investors will be watching demand for Nvidia’s newest data-center products, customer spending plans and the company’s ability to convert extraordinary AI demand into continued revenue growth.

The implications extend far beyond Nvidia. Companies throughout the semiconductor, cloud computing and data-center industries have benefited from the AI capital-spending cycle. A bullish Nvidia outlook could reinforce expectations for continued investment across the sector, while weaker guidance could trigger a broader reassessment of AI-related valuations.

Nvidia is scheduled to release its results at approximately 2:00 p.m. Pacific Time, according to its investor-relations calendar. (NVIDIA Investor Relations)

July Inflation Keeps the Fed in Focus

Investors also received important economic data Wednesday morning.

According to the U.S. Bureau of Economic Analysis, personal income increased 0.4% in July, disposable personal income increased 0.5% and personal consumption expenditures increased 0.2%. (Bureau of Economic Analysis)

The bigger issue for financial markets is inflation.

The headline PCE price index increased 3.7% year over year in July, unchanged from June. That remains significantly above the Federal Reserve’s 2% inflation objective. (Bureau of Economic Analysis)

Core PCE, which excludes food and energy prices, increased 0.2% on a monthly basis, broadly matching expectations. That provides some reassurance that inflation is not accelerating dramatically, but the annual rate remains elevated enough to complicate the Fed’s policy outlook. (tradingkey.com)

For investors, the message is mixed.

Consumer spending remains relatively resilient, but inflation has not yet returned to the Fed’s target. That could limit how aggressively policymakers can reduce interest rates.

Lower interest rates generally support stock valuations by reducing borrowing costs and increasing the relative attractiveness of equities. Conversely, persistently high inflation can keep bond yields elevated and place pressure on high-growth stocks whose valuations depend heavily on future earnings.

Treasury Yields Add Another Layer of Risk

The bond market is another key variable for stocks today.

The U.S. 10-year Treasury yield was around 4.67% on Wednesday, according to market data, after rising from the previous session. (Trading Economics)

Higher Treasury yields can create a headwind for equities because they increase the return investors can earn from relatively low-risk government debt. They can also increase financing costs for companies and put additional pressure on highly valued technology stocks.

That makes the upcoming Federal Reserve commentary particularly important.

Fed Chair Kevin Warsh is scheduled to deliver keynote remarks at the 2026 Jackson Hole Economic Policy Symposium on August 28. (Federal Reserve)

Investors will be looking for clues about the Fed’s interpretation of inflation, economic growth and the potential path of interest rates.

The market’s challenge is straightforward: economic data that is strong enough to support corporate earnings can simultaneously make it harder for the Fed to cut rates quickly.

Falling Oil Prices Ease Some Inflation Pressure

One of Wednesday’s more constructive developments is the sharp decline in crude oil prices.

Brent crude fell for a third consecutive session, dropping more than 2% to approximately $86 per barrel as markets responded to the possibility of additional oil supplies moving through the Strait of Hormuz. (Reuters)

Oil prices have been highly sensitive to developments surrounding the Middle East, particularly the risk of disruptions to shipments through the strategically important Strait of Hormuz.

A sustained decline in crude prices would be helpful for markets because energy costs feed into inflation expectations and corporate expenses.

The U.S. Energy Information Administration currently forecasts Brent crude to average approximately $85 per barrel during the third quarter of 2026, while warning that reduced shipments through the Strait of Hormuz could keep prices elevated. (U.S. Energy Information Administration)

For investors, lower oil prices could therefore provide some relief on the inflation front, particularly if the decline persists.

Energy companies could face pressure from lower commodity prices, while airlines, transportation companies and other energy-intensive businesses could benefit from lower operating costs.

$CRM and $CRWD Also Enter the Earnings Spotlight

Nvidia is not the only major technology company reporting results Wednesday.

Salesforce is scheduled to report its second-quarter fiscal 2027 results after the market closes. The company has become an important test of whether artificial intelligence is creating new software demand faster than investors fear AI could disrupt traditional software businesses. (Salesforce Investor Relations)

Salesforce has emphasized the development of AI-powered enterprise software, making its results particularly relevant as investors evaluate the commercial impact of the AI transition.

Cybersecurity company CrowdStrike is also expected to report results, with investors focused on revenue growth and demand for cybersecurity services. Market expectations are already elevated following strong performance in the stock this year. (Investopedia)

The combination of $NVDA, $CRM and $CRWD earnings gives investors a broader look at whether corporate technology spending remains strong across chips, enterprise software and cybersecurity.

What Investors Should Watch Through the Rest of the Week

The market is effectively waiting for several pieces of information to arrive.

First is Nvidia’s earnings report and, more importantly, its forward guidance. Second is the Federal Reserve’s interpretation of the latest inflation data. Third is the trajectory of oil prices and whether geopolitical developments continue to reduce concerns about supply disruptions.

The market’s reaction could depend less on whether individual numbers are technically “good” or “bad” and more on whether they change expectations.

If Nvidia delivers another major earnings beat and raises its outlook, investors could interpret that as evidence that the AI investment cycle remains intact. If inflation remains sticky while Treasury yields rise, however, valuation pressure could offset some of that enthusiasm.

That tension is likely to remain a defining feature of the stock market through the end of August.

The Bottom Line for the Stock Market Today

Wednesday’s market is about more than one earnings report.

$NVDA is testing whether the AI boom can continue to justify extremely high investor expectations. The July PCE report is testing whether inflation is moving quickly enough toward the Fed’s 2% objective. Treasury yields are determining how expensive equity valuations look relative to bonds, while falling oil prices are providing a potential source of relief.

For investors, the key question is increasingly whether corporate earnings growth can remain strong enough to overcome higher-for-longer interest rates.

Nvidia’s results tonight could provide the clearest answer yet.

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