Dow Futures Flat as Traders Await US PCE Inflation Data and Nvidia Earnings

US stock futures were cautious during European hours on Wednesday, with markets consolidating ahead of Nvidia's earnings report and key inflation data. Dow Jones Industrial Average futures held steady near the 53,650-point level, while S&P 500 futures and Nasdaq 100 futures edged down 0.11% and 0.23%, trading near 7,680 points and 29,210 points, respectively. The S&P 500 cash index previously closed at 7,677.28 points.

**Nvidia Earnings Serve as Short-Term Bellwether**

Market focus is heavily concentrated on Nvidia's fiscal 2027 second-quarter results, due after Wednesday's close. As a core beneficiary of the AI boom, its outlook will serve as a key test of whether massive AI infrastructure spending is sustainable. In Monday's regular trading session, Nvidia shares had already fallen 2.9%, dragging down semiconductor stocks such as Micron Technology and Broadcom, and causing the tech-heavy Nasdaq index to slide 0.8%. Investors generally believe there is little room for disappointment in the current market, and this earnings report will directly impact whether the recent stock market rally can be sustained.

**Macro Level Awaits Dual Guidance**

Beyond corporate earnings, macro-level signals are equally critical. Investors are awaiting the US July Personal Consumption Expenditures (PCE) inflation data due later this week, a key inflation gauge closely monitored by the Federal Reserve. Meanwhile, the annual Jackson Hole central bank symposium kicks off on Thursday, with Fed Chair Kevin Warsh expected to speak on Friday, and markets will look for important clues on the future interest rate path. According to market reports, the 10-year Treasury yield has recently held near multi-year highs of around 4.70%, continuing to pressure global borrowing costs.

**Geopolitics and Oil Prices Rattle Sentiment**

Geopolitical factors have also added uncertainty to markets. Reports indicate that US Treasury Secretary Scott Bessent has warned that countries doing business with Iran could face secondary sanctions, with the Trump administration characterizing the action as an "economic D-Day" against Iran. As a result, oil prices extended declines on Tuesday following Monday's sharp drop, with Brent crude trading below $92 per barrel, offering some relief to the bond market. However, some analysts noted that Bessent may tap into the Treasury's nearly $1 trillion account balance to expand the government bond buyback program, and this expectation partly drove the pullback in Treasury yields.