NEW YORK, Aug. 26 (Xinhua) -- U.S. stocks closed modestly lower on Wednesday as stubborn inflation data and caution ahead of the Federal Reserve's annual Jackson Hole symposium kept investors on edge.
The Dow Jones Industrial Average fell by 113.52 points, or 0.21 percent, to 53,463.88. The S&P 500 sank 1.58 points, or 0.02 percent, to 7,675.7. The Nasdaq Composite Index shed 21.1 points, or 0.08 percent, to 26,130.2.
Seven of the 11 primary S&P 500 sectors ended in the red, with health and communication services leading the laggards by dropping 1.01 percent and 0.71 percent, respectively. Meanwhile, industrials and utilities led the gainers by adding 1.07 percent and 0.47 percent, respectively.
On the macroeconomic front, the U.S. Commerce Department reported that the Personal Consumption Expenditures Price Index rose 3.7 percent year on year in July. The reading confirmed that inflation remains sticky above the central bank's 2-percent target, adding to nervousness in the bond market.
"Inflation continues to make slow progress towards target, leaving the possibility of a rate hike this year firmly in play, but consumer fundamentals remain soft due to flat-lining real incomes," wrote James Knightley, chief international economist at ING.
Investors are now focused on the Kansas City Fed's Jackson Hole Economic Policy Symposium, where Federal Reserve Chair Kevin Warsh is scheduled to deliver a keynote speech on the central bank's policy roadmap.
In corporate developments, Meta Platforms closed up 1.07 percent after the tech giant reached an agreement to settle a social media addiction lawsuit brought by dozens of U.S. states for approximately 16.7 billion U.S. dollars. Retailer Abercrombie & Fitch surged 35.67 percent following an upward revision to its full-year guidance. Bath & Body Works, J.M. Smucker and Kohl's all gained after reporting their quarterly results.
Technology and semiconductor stocks largely held steady ahead of Nvidia's second-quarter earnings release after the closing bell, which is widely seen as a benchmark for broader AI spending and hardware demand. "Nvidia's earnings, due later today, could create further volatility, with investors looking for a robust earnings beat and forward guidance that signals sustained demand for AI chips," said Ulrike Hoffmann-Burchardi, chief investment officer of the Americas and global head of equities at UBS.
