Tonight's Highlights: Core PCE Rises 3.3% YoY, Stock Futures Mixed Ahead of Nvidia Earnings
U.S. stock index futures traded mixed on Wednesday, with Dow futures edging higher while S&P 500 and Nasdaq 100 contracts retreated. Major European bourses traded mostly higher.
Pre-market macroeconomic data showed the U.S. headline PCE price index rose 3.7% year-over-year in July, matching the prior print against 3.6% consensus. Month-over-month, the index increased 0.2%, versus 0.1% expected and -0.1% previously.
Core PCE, which excludes volatile food and energy components, increased 3.3% year-over-year, in line with consensus and the prior reading. On a monthly basis, core PCE rose 0.2% against 0.2% expected and 0.1% prior.
The second estimate of U.S. real GDP growth for the second quarter came in unrevised at an annualized rate of 1.5%, matching expectations.
In the prior session, the three major U.S. stock benchmarks closed higher across the board, lifted by falling Treasury yields and retreating crude prices, with the Dow securing its third straight winning session.
Nvidia is scheduled to report second-quarter results after the bell on Wednesday. FactSet consensus models earnings per share of $2.09 on revenue of $92.28 billion.
As the largest component of the S&P 500 with a market capitalization exceeding $5 trillion, the market is closely watching Nvidia's performance metrics, CEO Jensen Huang's commentary, and the immediate price response.
Investors also remain focused on Fed Chair Kevin Warsh's scheduled keynote address at the Jackson Hole Economic Symposium on Friday.
Analysts suggest Warsh may continue to avoid delivering explicit forward guidance ahead of the September FOMC meeting.
"Given his approach during the June and July press conferences, we view it as unlikely that he will engage in a direct, granular discussion of the economic outlook and its policy implications for the remainder of 2026,"
Kurt Lewis, head of central bank policy at Piper Sandler, wrote in a client note. "Instead, we expect the bulk of the address to focus on broader, supply-side macro themes."
Crude oil extended its decline amid tentative diplomatic developments in the Middle East.
Brent crude futures have shed over 9% this week, dropping roughly $10 per barrel in just three trading sessions, though regional mediators caution that definitive diplomatic breakthroughs have yet to materialize.
Company News
OpenAI Claims In-House Silicon Outperforms Nvidia GB300
OpenAI stated on August 25 that its newly developed "Jalapeno" accelerator outperformed Nvidia's current flagship lineup across two primary benchmarks in testing: AI workload throughput per unit of power consumption and end-to-end response latency.
SpaceX Commits $100B for Starship Launch Facility in Louisiana
SpaceX announced plans to invest $100 billion to construct a dedicated launch complex across southern coastal wetlands in Louisiana to support thousands of annual Starship launches. Construction is slated to begin next year, creating over 3,000 jobs.
The Louisiana Department of Economic Development disclosed that the completed complex will feature five launch facilities—each equipped with two pads and propellant storage—alongside on-site propellant refineries, power generation infrastructure, spacecraft processing bays, and employee residential facilities.
Anthropic Pins Total Addressable Market Above $30T Ahead of $2T IPO Target
Anthropic plans to pitch institutional investors on a Total Addressable Market (TAM) exceeding $30 trillion, surpassing the $28.5 trillion TAM outlined in SpaceX's prospectus.
To model the figure, Anthropic is assessing the full scope of economic labor addressable by advanced generative AI systems. Anthropic projects annual revenue between $190 billion and $200 billion by 2028, targeting an IPO valuation near $2 trillion.
Waymo to Begin Autonomous Fleet Testing in Munich
Alphabet's autonomous driving unit Waymo announced it will begin testing self-driving vehicles in Munich over the coming weeks, targeting a commercial robotaxi service rollout before year-end 2027.
The company has engaged local and federal German regulators regarding commercial licensing requirements and plans to invest in local operations and engineering talent ahead of the debut.
Tesla China Refutes Rumors of Shanghai Data Center Shutdown
Tesla representatives dismissed online reports claiming its Shanghai data center was abandoned and staff evacuated, stating the rumors are entirely unfounded.
The Shanghai facility was established in 2021 to store localized vehicle production and operational telemetry within China.
Tech Giants Lift Hardware Prices as Global Memory Deficit Seen Lasting to 2027
Skyrocketing demand for AI compute infrastructure has triggered broad memory price inflation, pushing hardware vendors to pass upstream component costs down to end consumers.
Amazon recently raised hardware pricing, lifting its entry-level Echo Dot by roughly 60% from $49.99 to $79.99 and its base Kindle e-reader by 36% from $109.99 to $149.99.
The move follows similar measures by Apple, Microsoft, and Dell, which have raised prices or reduced baseline memory allocations to protect hardware margins.
IDC warns that structural global memory shortages could persist through 2027, with industry models projecting memory spot prices to peak in 2028 before stabilizing.