26/08/2026
Risk aversion has risen ahead of earnings releases, leading U.S. stock index futures slightly lower alongside NVIDIA’s declining share price. Investors are awaiting NVIDIA’s earnings report, which will test market confidence in the artificial intelligence sector. Meanwhile, crude oil prices extended their losses, easing concerns over inflation pressures.
In terms of indices, Nasdaq 100 futures fell 0.3% and S&P 500 futures edged down 0.1%. Asian-Pacific equities traded broadly steady with the MSCI Asia Pacific Index seeing minimal volatility, while benchmark indices in Japan and South Korea posted mixed results.
Noticeable movements were seen in the commodity market. Driven by news that Iran and Oman are negotiating a temporary framework to resume shipping operations in the Strait of Hormuz, Brent crude dropped 1.7% to around $87 per barrel. The decline in oil prices pulled U.S. Treasury yields lower, with the 10-year U.S. Treasury yield falling 7 basis points to 4.63% on Tuesday.
Precious metals and cryptocurrencies remained stable. Gold held its gains after five consecutive trading days of rises, trading nearly flat at approximately $4,655 per ounce. Bitcoin prices steadied around $78,500 with limited fluctuations.
Persistent inflationary pressures and elevated Treasury yields have weighed on market risk appetite. The pullback in oil prices has offered markets temporary relief. Three pivotal events are set to dominate market movements for the week.
First, NVIDIA will release its quarterly earnings results on Wednesday, serving as a critical test of whether the AI rally can resume. Second, the U.S. Personal Consumption Expenditures (PCE) inflation data, the Federal Reserve’s preferred inflation gauge, is due for release and will shape interest rate expectations. Third, newly appointed Federal Reserve Chair Kevin Walsh will deliver his first major speech at the Jackson Hole Economic Symposium on Friday, offering fresh signals on monetary policy and economic outlooks.
NVIDIA’s earnings release stands as the core market focus for Wednesday. Despite the company’s string of strong financial results previously, AI-related stocks have faced persistent selling pressure. Investors are questioning whether billions of dollars invested in AI technologies can deliver commensurate returns, weighing on the sector’s valuation recently.
Analysts estimate NVIDIA’s revenue for the latest quarter nearly doubled year-over-year to $92 billion, exceeding the full-year revenue of most of its tech rivals. The stellar performance will serve as a key benchmark to verify whether the AI boom can sustain the lofty valuations of technology stocks.
On the macroeconomic front, data released on Tuesday showed U.S. consumer confidence fell to a seven-month low in August, dragged down by deteriorating business conditions and a weakening labor market outlook. As the Fed’s primary inflation indicator, the upcoming PCE price index will provide critical guidance for future interest rate adjustments. Investors are eagerly anticipating Walsh’s debut Jackson Hole speech for clearer insights into economic assessments and monetary policy trajectories.
In foreign exchange and trade markets, the Canadian dollar remained stable. Canadian Prime Minister Mark Carney has announced countermeasures against new tariffs imposed by U.S. President Donald Trump and pledged support for domestic enterprises affected by the escalating bilateral trade disputes. The United States is considering imposing additional retaliatory trade measures against Canada, pointing to further tensions in U.S.-Canada trade relations.
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