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Wall Street Cautious as Investors Await Nvidia's Crucial Earnings
26 Aug
Summary
- Wall Street stocks end lower as investors analyze U.S. rate outlook
- Nvidia's quarterly report seen as a crucial test of AI market
- Upcoming inflation and jobs data to influence Fed's next move

On August 26, 2025, Wall Street stocks ended the day lower as investors analyzed the outlook for U.S. interest rates and looked ahead to AI chipmaker Nvidia's quarterly earnings report later this week. The cautious trading came after a rally on Friday, fueled by hints from Federal Reserve Chair Jerome Powell that a rate cut could be considered at the central bank's September meeting.
However, Powell also noted that a rate cut was not certain, and upcoming inflation and jobs data will be crucial in determining the Fed's next move. The Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, is due to be released on Friday, while official nonfarm payrolls data is expected next week.
Nvidia's earnings report on Wednesday is seen as a crucial test of the scorching AI trade, as the company makes up about 8% of the S&P 500. With the AI market's dominance affecting vast numbers of Americans who use index investment funds, the results will be closely watched by market participants.