US Stocks Slip as Inflation at 3.7% Meets Ahead of Nvidia Earnings
US indexes closed lower on Aug 26 as investors weighed a hotter-than-expected inflation reading and held back ahead of Nvidia earnings.
The July inflation rate came in at 3.7%, slightly above expectations. Traders treated the print as “sticky” enough to limit rate-cut optimism, especially with Fed Chair Kevin Warsh’s Jackson Hole speech approaching. Growth stocks were cautious, and the Nasdaq moved only marginally lower.
In the after-hours session, Nvidia earnings provided a catalyst. Nvidia reported Q2 revenue of $96.22 billion, more than double the year-ago figure and above analyst expectations of about $92 billion. The data center segment drove the result with $89 billion in revenue, up 117% year over year.
Nvidia shares rose more than 4% in extended trading. Management guidance supported the move: Nvidia projected Q3 revenue of roughly $108 billion and indicated about 70% revenue growth for fiscal 2028.
For crypto traders, the key takeaway is that this cycle’s rate sensitivity remains central. A stronger Nvidia earnings outcome improved AI/tech risk sentiment, but the 3.7% inflation print keeps the macro backdrop restrictive, which can influence BTC and ETH via USD rates, liquidity expectations, and risk appetite.
Neutral
The news is mixed for crypto. On one hand, a strong Nvidia earnings print and bullish guidance improved AI/tech risk sentiment, which can support broader risk assets and, indirectly, crypto through “risk-on” flows. On the other hand, the July inflation rate of 3.7%—described as sticky—limits how quickly markets can price in monetary easing. With Fed Chair Kevin Warsh’s Jackson Hole speech looming, uncertainty around future rate expectations can keep volatility elevated.
Historically, crypto tends to react more to changes in real yields, USD strength, and liquidity expectations than to a single tech company’s results. In the short term, traders may take Nvidia earnings as a catalyst to buy dip in higher-beta assets (including crypto) if equities stabilize. In the longer term, the inflation/Fed path remains the dominant driver: persistent inflation typically delays cuts, which can cap rallies and increase drawdown risk for BTC and ETH.
Overall, the catalyst is supportive for sentiment, but the macro constraint remains unresolved—hence a neutral expected impact.