Nvidia and Jackson Hole put AI valuations and bond yields back at the center of markets

Moki

3 min read·2026/08/27

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U.S. stocks were little changed as hotter-than-expected PCE inflation lifted Treasury yields and investors waited for Nvidia’s earnings and Kevin Warsh’s first Jackson Hole speech as Fed chair. Retail, Meta’s legal settlement, and U.S.-Canada tariffs added sector-specific pressure points.

Image / AP News

Inflation and yields keep Wall Street cautious before Nvidia

U.S. equities drifted after July PCE inflation stayed at 3.7% year over year, above economists’ 3.6% expectation, while real consumer spending was flat. AP reported the S&P 500 was mostly unchanged, the Dow was down 123 points, or 0.2%, and the Nasdaq slipped 0.1% in Wednesday afternoon trading. The 10-year Treasury yield rose to 4.67% from 4.64%, keeping discount-rate pressure on growth stocks just as markets waited for Nvidia’s post-close report.

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Image / NVIDIA Newsroom

Nvidia’s test is guidance, not only the Q2 number

Nvidia scheduled fiscal Q2 2027 results for Wednesday after the U.S. close, with its call at 5 p.m. ET. The company’s prior Q2 revenue outlook was $91.0 billion, plus or minus 2%, and Reuters/LSEG consensus was about $92.18 billion; investors were also focused on Q3 expectations near $104.2 billion, gross margin around 75%, Blackwell demand, and the autumn ramp of the Vera Rubin platform. The broader issue is whether AI infrastructure spending still supports market-wide valuations without excessive dependence on financing structures and concentrated hyperscaler demand.

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Jackson Hole puts the bond market back in the Fed’s court

Treasury Secretary Scott Bessent’s plan to double longer-dated bond buybacks to $4 billion per operation has not durably capped yields. AP reported the 10-year Treasury yield rebounded to 4.69%, while the 30-year yield reached 5.23%, only slightly below a 19-year high. Investors are looking for Fed Chair Kevin Warsh’s Friday Jackson Hole speech to clarify how the Fed will respond to inflation, fiscal borrowing and long-end yield pressure.

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Consumer stocks split between apparel strength and value-retail tests

Retail data were mixed rather than recessionary. Abercrombie & Fitch jumped 31.7% after stronger profit and a raised full-year outlook, while J.M. Smucker also gained after beating expectations. At the same time, Dollar General and Dollar Tree were scheduled to report before Thursday’s open, making same-store sales, traffic, tariffs, shrink, and margin commentary key tests of lower-income consumers after real spending showed no growth in July.

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Meta’s $18 billion settlement removes a major legal overhang

Meta agreed to pay up to $18 billion and add stronger youth-safety controls to Facebook and Instagram, ending a landmark trial over teen social-media addiction and resolving claims from nearly every U.S. state. The agreement includes default two-hour daily limits, school-hour notification restrictions, age-assurance measures, and independent auditing. Meta shares rose about 1.5% by midday, suggesting investors viewed the costly deal as preferable to an open-ended trial and harsher remedies.

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U.S.-Canada tariffs force a new cost map for manufacturers

The U.S.-Canada trade fight intensified after Washington imposed 50% tariffs on selected Canadian goods and Ottawa answered with countermeasures on roughly $27.6 billion of U.S. imports, effective September 8. Canada’s list includes steel, dairy, appliances, farm equipment, pulp and paper, and electronics, with matching 15%, 25%, and 50% rates. The risk is concentrated in autos, metals and cross-border manufacturing, where parts and materials can cross the border multiple times before final sale.

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