U.S. equity markets remained resilient on Thursday as investors largely ignored a minor upward revision to first-quarter core CPI, while turning their attention to the Federal Reserve's preferred inflation gauge and Nvidia's upcoming earnings report.
The Bureau of Labor Statistics' annual benchmark update showed core CPI for Q1 2026 was 0.1 percentage point higher than previously estimated. The adjustment briefly lifted Treasury yields, but the Dow Jones Industrial Average still traded up 0.4% at 39,250.67 by 11:00 a.m. EDT, with the S&P 500 and Nasdaq Composite posting modest gains. The 10-year Treasury yield settled near 4.32%, while CME FedWatch data showed futures pricing for a September rate cut held steady at 68%.
Tom Hainlin, national investment strategist at U.S. Bank Wealth Management, said the market was looking through the statistical noise. "The broader trend of disinflation is intact, and the revision doesn't alter the trajectory," he noted. Strong earnings from Dow components UnitedHealth Group and Goldman Sachs helped sustain the advance.
Looking ahead, Dow Jones futures were flat on Monday as investors braced for the Personal Consumption Expenditures price index release and Nvidia's quarterly results. Annual PCE inflation stood at 2.7%, still above the Fed's 2% target. A hotter-than-expected core PCE could dampen rate-cut hopes, while a cooler reading may reinforce expectations for easing later this year.
Nvidia's report, due after Wednesday's close, is seen as a bellwether for the AI trade, with data center revenue a key metric. Together, the PCE data and Nvidia guidance are expected to set the tone for risk assets, including digital assets, in the coming sessions.
