Stocks closed largely flat on Wednesday, with the S&P 500 slipping 0.02 percent, the Dow Jones Industrial Average falling 0.21 percent, and the Nasdaq 100 edging up 0.05 percent. Futures were more upbeat, as the E‑mini S&P (ESU26) gained 0.02 percent and the September E‑mini Nasdaq (NQU26) rose 0.08 percent.

Market Snapshot

The major U.S. indices showed little net movement, reflecting a lack of clear direction ahead of Nvidia’s earnings release later that day. Meanwhile, the 10‑year Treasury note yield climbed two basis points to 4.66 percent, curbing potential stock gains as inflation data suggested the economy was still above the Federal Reserve’s 2 percent target.

Earnings Highlights

J M Smucker experienced a surge of more than 4 percent after announcing first‑quarter adjusted earnings per share that outpaced expectations and lifting its 2027 adjusted EPS outlook. In contrast, Intuit fell over 3 percent following a weaker-than‑anticipated full‑year revenue and earnings forecast.

Economic Indicators

  • Mortgage Applications: U.S. mortgage‑bankers‑association applications dropped 1.0 percent in the week ending August 21, with purchase applications down 0.3 percent and refinancing down 2.0 percent. The average 30‑year fixed‑rate mortgage rate increased by one basis point to 6.78 percent.
  • Personal Spending and Income: July’s consumer‑spending figure rose 0.2 percent month‑over‑month, beating the 0.1 percent forecast, while personal income climbed 0.4 percent, surpassing the 0.2 percent expectation.
  • Core PCE Price Index: The Federal Reserve’s preferred inflation gauge increased 0.2 percent month‑over‑month and 3.3 percent year‑over‑year, in line with predictions.
  • Capital Goods Orders: Non‑defense capital‑goods orders (excluding aircraft and parts) for July advanced 0.2 percent month‑over‑month, falling short of the 0.7 percent forecast; June’s figure was revised upward to 1.7 percent from 1.2 percent.
  • GDP and Consumption: Second‑quarter GDP growth remained at 1.5 percent quarterly, annualized, while personal consumption was revised up to 3.4 percent from 3.2 percent. The Q2 core PCE price index was also nudged higher to 3.6 percent from 3.4 percent.

Anticipation for Nvidia

Investors are keenly awaiting Nvidia’s post‑market earnings, which are viewed as a key gauge of artificial‑intelligence spending. Bloomberg‑compiled projections suggest the company’s Q2 revenue could almost double compared to a year ago, marking its fastest growth in two years. Market watchers will also pay attention to CEO Jensen Huang’s commentary on capital spending by major customers, future demand, and a series of new financing arrangements involving the firm.

Oil Prices Respond to Geopolitical Developments

Octane‑grade West Texas Intermediate crude slipped to a one‑and‑a‑half‑week low, as an Oman news agency reported a discussion between Iranian Foreign Minister Abbas Araghchi and Omani counterpart Badr Albusaidi about creating a “temporary joint maritime corridor” to resume transit through the Strait of Hormuz. Crude prices have dropped more than 8 percent this week amid easing Middle‑East tensions and a partial resumption of shipments through the strait. A New York Times story noted that the U.S. State Department is preparing to redeploy diplomats to embassies in the region that were previously evacuated during the Iran conflict, indicating that the Trump administration does not anticipate a return to full‑scale hostilities.

Earnings Outlook

Strong expectations for Q2 earnings continue to buoy market sentiment. Bloomberg Intelligence projects the S&P 500 to deliver a 32 % rise in earnings for the quarter, surpassing the 23 % forecast and almost four times the average growth rate seen outside the pandemic era since the fourth quarter of 2013. AI‑related spending is expected to dominate this expansion, with infrastructure names anticipated to contribute roughly 60 % of the index’s EPS growth. To date, 86 % of the 469 S&P 500 companies that have reported Q2 results have outperformed analysts’ expectations.

The market is pricing in a 36 % probability of a 25‑basis‑point rate increase at the forthcoming FOMC meeting scheduled for September 15‑16.

International Indices

Overseas markets finished higher on Wednesday: the Euro Stoxx 50 gained 0.23 %, Shanghai Composite rose 0.59 %, and Japan’s Nikkei‑225 added 0.62 %.

Interest‑Rate Landscape

U.S. Treasury Notes
The 10‑year Treasury (ZNU6) slipped 6.5 ticks, while its yield climbed 3.1 basis points to 4.660 %. The move followed stronger‑than‑expected July personal spending and income figures, and an upward revision to the Q2 core PCE price index, which weighed on the bonds. Conversely, the July core PCE, the Fed’s preferred inflation gauge, matched forecasts, easing inflation concerns. A $70 billion auction of 5‑year notes attracted robust demand, achieving a bid‑to‑cover ratio of 2.37, slightly above the 10‑auction average of 2.34.

European Government Bonds
Bond yields in Europe edged higher. Germany’s 10‑year bund rose 3.3 basis points to 3.234 % after falling to a 1½‑week low of 3.185 %. The UK’s 10‑year gilt climbed 4.3 basis points to 5.031 %, also recovering from a 1½‑week trough of 4.978 %.

ECB Executive Board member Isabel Schnabel warned that at the current policy rate, inflation is unlikely to reach its target in the medium term, indicating that further tightening will be necessary. The market assigns a 97 % probability to a 25‑basis‑point hike by the ECB at its next policy meeting on September 10.

Corporate Movers

  • Semtech (SMTC) – Shares jumped over 10 % after reporting a Q2 adjusted EPS of $0.71, beating the consensus of $0.61, and projecting Q3 earnings of $1.02–$1.08, above the expected $0.73.
  • Summit Therapeutics (SMMT) – Stock climbed more than 7 % following the announcement that its late‑stage ivonescimab trial in biliary tract cancer outperformed AstraZeneca’s durvalumab plus chemotherapy.
  • J M Smucker (SJM) – Gained over 4 % after posting a Q1 adjusted EPS of $3.24 versus the $2.22 consensus, and raising its 2027 adjusted earnings outlook to $10.50–$11.00 from a prior $9.75–$10.25, exceeding the consensus estimate of $10.05.
  • Williams Cos (WMB) – Advanced more than 4 % after Morgan Stanley named the company a top pick in the AI infrastructure buildout.
  • Oracle (ORCL) – Climbed over 3 % following Citigroup’s addition of the stock to its positive catalyst watch list, with a $330 price target.
  • Datadog (DDOG) – Rose over 2 % after The Information reported that Palo Alto Networks CEO Arora was exploring a potential acquisition.
  • Spyre Therapeutics (SYRE) – Fell more than 12 % after a mid‑stage study of its rheumatoid arthritis drug failed to meet the company’s internal benchmarks.
  • Zoom Communications (ZM) – Slipped over 6 % after issuing a Q3 adjusted EPS forecast of $1.46–$1.48, below the consensus of $1.50.
  • Intuit (INTU) – Declined over 3 % after presenting a 2027 adjusted EPS outlook of $22.88–$23.12, well below the consensus of $27.27, and a revenue projection of $23.28–$23.51 billion, also trailing the consensus of $23.82 billion.
  • GoDaddy (GDDY) – Dropped more than 4 % after Wells Fargo Securities downgraded the stock to underweight from equal weight, setting a $76 price target.

Corporate Disruptions and Earnings Calendar

Boston Scientific’s shares fell by more than 3 % after the company announced an ongoing cybersecurity incident that is having a global impact on certain IT systems.

Nike’s stock dropped over 2 % and became the largest loser within the Dow Jones Industrial Average following Truist Securities’ decision to downgrade the firm to a hold rating from a buy recommendation.

Upcoming Earnings – 27 August 2026

The following companies are scheduled to report earnings on this day:

  • Affirm Holdings Inc. (AFRM)
  • Autodesk Inc. (ADSK)
  • Best Buy Co. Inc. (BBY)
  • Burlington Stores Inc. (BURL)
  • Dollar General Corp. (DG)
  • Dollar Tree Inc. (DLTR)
  • Elastic NV (ESTC)
  • Forgent Power Solutions Inc. (FPS)
  • Gap Inc. (GAP)
  • Hormel Foods Corp. (HRL)
  • IREN Ltd (IREN)
  • Marvell Technology Inc. (MRVL)
  • Rubrik Inc. (RBRK)
  • SentinelOne Inc. (S)
  • Ulta Beauty Inc. (ULTA)
  • Workday Inc. (WDAY)

More updates are available from Barchart.