TLDR
- Nvidia reports earnings after the bell, with Wall Street expecting strong AI-driven growth
- US inflation rose to 3.7% in July, complicating the Federal Reserve’s next move
- Intuit dropped after its fiscal 2027 revenue forecast missed analyst estimates
- Meta rose after making progress settling child safety lawsuits brought by US states
- Oil prices fell below $90 as hopes grew for easing tensions around the Strait of Hormuz
Nvidia Earnings Put AI Stocks in the Spotlight
Nvidia is the center of attention on Wall Street today as the AI chip company prepares to report earnings after the closing bell.
Analysts expect another strong quarter, with investors watching data-center revenue, demand for Nvidia’s latest AI systems, and gross margins closely.
Options markets are pricing in a move of around 5% following the report, which would represent a large swing in market value.
The results carry weight beyond Nvidia alone. Semiconductor, server, and data-center stocks have been moving in line with expectations around Nvidia’s growth, making tonight’s report a potential catalyst across the tech sector.
Hotter Inflation Data Puts Pressure on the Fed
US inflation came in above expectations, with the annual rate rising to 3.7% in July.
That figure raises questions about what the Federal Reserve does next. Markets had been hoping cooler conditions would keep the Fed on hold.
Persistent inflation limits that option. Growth stocks, including many in tech, are sensitive to interest-rate changes because higher rates reduce the value placed on future earnings.
Investors will now be watching for any signals from Fed officials about how they view the renewed price pressure.
Intuit Falls After Weak 2027 Outlook
Intuit fell after the financial software company issued a fiscal 2027 revenue forecast below Wall Street estimates.
The company guided for revenue of $23.28 billion to $23.51 billion, which came in short of the consensus view. Growth is expected to slow to around 9% to 10%.
Concerns were raised around slowing momentum at Mailchimp. Intuit is also cutting some TurboTax prices to attract more users.
The reaction reflects how little room investors are giving software companies that miss growth targets right now.
Meta Rises as Legal Pressure Eases
Meta moved higher after making progress toward resolving lawsuits filed by US states over the alleged impact of its social media platforms on children.
The development eased one area of legal uncertainty around the company. Meta has been under scrutiny over the effects of Facebook and Instagram on younger users.
The stock has also been supported by confidence in Meta’s AI plans and the strength of its advertising business, even as the company continues heavy spending on data centers and AI infrastructure.
Oil Drops on Hormuz Hopes
Oil prices fell with Brent crude dropping below $90 per barrel after investors grew more optimistic about negotiations between Iran and Oman that could ease tensions around the Strait of Hormuz.
Lower oil prices tend to support equities by reducing costs and easing inflation. That matters on a day when inflation data already came in above expectations.
With Nvidia’s report due after the bell, the results could set the tone for technology stocks heading into the final days of August.
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