Dow Jones Rallies as Equities Move Higher

The Dow Jones Industrial Average (DJIA) advanced on Wednesday, mirroring a broader upward trend in the equities market. Despite a lack of major market-moving news, investors are showing a renewed appetite for stocks. Key economic data, including U.S. GDP growth and PCE inflation figures, are scheduled for release later in the week.

The DJIA’s ascent on Wednesday pushed the index past the 45,500 mark, recovering from a recent technical pullback that saw it dip from its all-time highs. The index found a solid support level near 45,200 and, despite being slightly below its peak of 45,760, its long-term bullish trajectory remains robust.

Markets are largely unfazed by headlines regarding U.S. President Donald Trump’s efforts to replace Federal Reserve (Fed) governors with his own selections. Investors appear to be betting that the upcoming economic data will not derail expectations for a potential quarter-point interest rate cut by the Fed in September.

Key Data and Nvidia Earnings in Focus

The market’s focus will now shift to significant economic releases. The U.S. Bureau of Economic Analysis is set to publish the second-quarter GDP growth figures on Thursday. The second estimate for Q2 GDP is expected to be revised slightly higher to an annualized rate of 3.1%.

Friday will bring the week’s most anticipated report: the Personal Consumption Expenditures (PCE) Price Index for July. This inflation gauge is a critical factor for the Fed’s policy decisions. A significant acceleration in PCE could diminish hopes for a September rate cut. Analysts are forecasting a year-over-year rise in core PCE inflation to 2.9%.

In corporate news, AI chipmaker Nvidia (NVDA) released its latest quarterly earnings report after the close of trading on Wednesday. As a dominant force in the AI-fueled market rally, Nvidia’s performance is closely watched. The company’s massive market capitalization means it now constitutes a significant portion of the S&P 500 index. While Nvidia has consistently exceeded analyst revenue expectations, its stock has historically shown volatile performance following earnings reports. The company announced fiscal second-quarter revenue of $46.7 billion, surpassing analyst expectations, but its stock slipped in after-hours trading due to a lower-than-expected guidance for its data center revenue and its outlook for the next quarter.