S&P 500 edges lower despite NVIDIA beat and steady core PCE

The S&P 500 edged lower despite NVIDIA's quarterly results and July core PCE inflation matching expectations. The cash session had closed nearly flat at 7,675.70 points before NVIDIA reported. NVIDIA revenue reached $96.2 billion. Revenue exceeded roughly $92 billion in consensus estimates. Revenue increased 106% from a year earlier. NVIDIA reported earnings per share of $2.22. The result exceeded the $2.09 estimate. Earnings per share more than doubled from $1.05 a year earlier. Core PCE rose 0.2% month over month. Core PCE rose 3.3% year over year. Total PCE increased 0.2% month over month. Total PCE increased 3.7% year over year. Both total PCE readings exceeded forecasts by 0.1 percentage points. NVIDIA shares closed the regular session at $209.66. The shares fell 1.59% from the previous close, according to TradingView data. The shares later rose to $218.72 in after-hours trading. The after-hours gain was 4.32%. NVIDIA's gross margin was 75%. NVIDIA guided for a slight decline to 74% next quarter. Hyperscaler revenue more than doubled to $48.7 billion. Revenue from the AI cloud, industrial, and enterprise segment increased 138% to $40.3 billion. Jensen Huang said demand was accelerating. Huang said artificial intelligence had reached an inflection point and that computing was generating real revenue. NVIDIA has the largest weighting of any company in the S&P 500. The index rose 0.32% on Tuesday to 7,677.28. Tuesday's advance was the index's third consecutive winning session. Futures slipped before NVIDIA's report on Wednesday. The 30-year Treasury yield had reached levels not seen in nearly two decades during the previous week. Falling Treasury yields had helped technology shares recover some losses. Investors also considered valuation concerns linked to the S&P 500's concentration in artificial-intelligence-related companies. NVIDIA shares have struggled to hold gains after several recent earnings beats. The market has demanded increasingly ambitious guidance to support the company's valuation. NVIDIA has posted modest gains so far in 2026. Kevin Warsh's speech at Jackson Hole on Friday is the next major market event mentioned.