US equity indexes traded mixed this week as Nvidia's (NVDA) quarterly results failed to trigger a market rally ahead of the soft-landing signal from the Federal Reserve's preferred inflation measure.
* The Dow Jones Industrial Average ended at 41,563.08 on Friday, compared with 41,175.08 a week ago. The Nasdaq Composite closed at 17,713.62, versus 17,877.89 a week prior. The S&P 500 closed at 5,648.38, compared with 5,634.61 a week earlier. The S&P 500 and the Dow posted a fourth consecutive month of gains.
* Financials, utilities, and healthcare topped the sector charts this week, while consumer cyclical and technology were the steepest decliners, reflecting a change in market leadership.
* Nvidia's results, released post-bell Wednesday, disappointed investors as shares ended the day lower. But, the company's performance failed to undermine investor confidence across the market.
* "Nvidia traded down in immediate post-market trading related in part to somewhat frothy expectations around where guidance would land and what we long considered be unrealistic expectations the company had set three months ago around the timing for Blackwell volume shipments and how much revenue it would see this year," according to UBS. The results underpinned the bullish outlook for the artificial intelligence "revolution," Wedbush Securities said, implying the so-called AI trade was not at risk.
* The personal consumption expenditures price index rose, as expected, by 0.2% in July, following a 0.1% gain in June. The year-over-year rate was unchanged from 2.5% in June. The core PCE price index rose 0.2% for the second month in a row, matching forecasts. The year-over-year rate remained at 2.6% for the third straight month.
* The probability of a 25 basis-point interest-rate cut stood at 70% late Friday, according to the CME Group's FedWatch Tool. The remaining 30% likelihood was for a 50 basis-point drop, which would only come to fruition if the Fed expected a hard economic landing.
