Highlights
Stocks edged down on Wednesday in quiet trading with bond yields slightly higher after a mostly as-expected inflation report showed persistent inflation. At 1:30 PM ET, the Dow Jones industrial average and the Nasdaq were both off 0.2 percent and the S&P 500 was flat. The dollar and oil prices were both higher.
Oil prices gained after President Trump said he has no timeline to restart peace talks with Iran and reports said Russian President Putin is planning to escalate attacks on Ukraine. Investors appeared cautious ahead of Nvidia earnings due after the close.
Stocks were depressed somewhat as market expectations for a Federal Reserve rate hike ticked up after the latest inflation reading. The monthly PCE price index growth rates rose from June for both the overall and core measures, while 12-month rates failed to show signs of easing.
The PCE price index was up 0.2 percent on the month in July after contracting 0.1 percent in June, and rose 3.7 percent year-over-year, the same as in June, coming in slightly above expectations. The core index, excluding food and energy, was in line with expectations at 0.2 percent and 3.3 percent, after increases of 0.1 percent month-to-month and 3.3 percent year-over-year in June.