Nvidia earnings, sticky U.S. inflation and Canada tariffs shape a divided business outlook

Moki

3 min read·2026/08/27

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Moki

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Global business news is split between exceptional AI-driven earnings and a tougher macro backdrop. Nvidia and enterprise software companies continue to show strong demand, while U.S. inflation, slower real spending, a high-profile Meta settlement and the U.S.–Canada tariff fight keep policy and cost risks elevated.

Image / AP News

Nvidia turns AI spending into the market’s main earnings test

Nvidia again cleared Wall Street’s expectations, reporting net income of $59.69 billion, or $2.46 per share, for the May–July quarter, versus $26.42 billion a year earlier. Revenue more than doubled to $96.22 billion, above the $92.27 billion analyst consensus cited by AP, and the company forecast roughly $108 billion in revenue for the August–October quarter. Data-center revenue reached $89 billion, more than twice last year’s level, but Nvidia said its outlook assumes no data-center compute revenue from China, keeping geopolitics and export constraints tied directly to the AI trade.

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U.S. data show sticky inflation, slower real spending and resilient profits

The latest U.S. data complicate any simple easing narrative. BEA reported July personal income up 0.4%, disposable income up 0.5% and current-dollar consumer spending up 0.2%, but real personal consumption expenditures were essentially flat. The PCE price index rose 3.7% from a year earlier and core PCE rose 3.3%, still well above the Federal Reserve’s 2% target. A separate BEA second estimate kept Q2 real GDP growth at a 1.5% annualized rate after 2.1% in Q1, while corporate profits from current production increased by $400.9 billion, showing companies remain profitable even as inflation and rates pressure consumers.

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Jackson Hole opens with payments innovation on the agenda

The Kansas City Fed’s Jackson Hole Economic Policy Symposium runs August 27–29 under the theme "Financial Innovation: Implications for Payments and Policy." The topic matters because markets are already weighing persistent inflation, high Treasury yields and the timing of any Fed move. AP reported the 10-year Treasury yield edged up to 4.65% after the inflation and growth updates, while traders saw roughly a three-in-four chance of at least one Fed rate hike by year-end. That makes central-bank language on innovation, payments and policy transmission more than a niche financial-technology discussion.

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Image / Salesforce

AI software earnings broaden the story beyond chips

The AI business story is no longer only about GPUs. Salesforce reported fiscal Q2 revenue of $11.3 billion, up 11% year over year, subscription and support revenue of $10.8 billion, and non-GAAP EPS of $5.90. Its Agentforce and Data 360 annual recurring revenue reached nearly $3.9 billion, up more than 210%, and Agentforce ARR exceeded $1.5 billion. CrowdStrike separately reported revenue of about $1.47 billion, up 26%, subscription revenue of $1.4 billion and ending ARR of $5.84 billion, showing that AI adoption is also feeding cybersecurity and enterprise-platform demand rather than staying confined to semiconductor suppliers.

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Image / AP News

U.S.–Canada tariffs keep supply-chain risk in the foreground

Trade policy remains the counterweight to the AI earnings boom. AP reported that new 50% U.S. tariffs on certain Canadian goods followed the collapse of trade talks, while Canada answered with retaliatory tariffs on about $20 billion of American imports including steel, dairy products, appliances and farm equipment. The dispute covers only around 5% of Canada’s exports to the U.S., but the two economies traded $880 billion last year and Canada sends 72% of its exports south. That makes even a contained dispute relevant for autos, metals, energy, agriculture and the coming USMCA review.

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Image / AP News

Meta settlement turns child-safety rules into a large platform cost

Meta agreed to pay up to $18 billion and add stronger child-safety measures to Facebook and Instagram to resolve claims from nearly all U.S. states over teen social-media addiction. AP reported the settlement would be paid over 10 years, with California receiving at least $1.5 billion, and includes measures such as parent-controlled time limits, reduced notifications during school hours, stronger age assurance and independent auditing. Meta’s shares still rose about 1%, partly because the payment is small relative to its $201 billion 2025 revenue, but the agreement raises the compliance baseline for the wider social-media industry.

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