Stock Market Today: Dow off 140 points, S&P 500 and Nasdaq lower as bond yields rise; PCE inflation data ticks higher in July and investors await Nvidia earnings

U.S. equities closed lower Wednesday as the Dow dropped 140 points, while the S&P 500 and Nasdaq declined ahead of closely watched earnings from Nvidia. Bond yields climbed as traders digested fresh inflation data.

The Personal Consumption Expenditures index for July ticked higher, adding pressure to rate-sensitive growth stocks. The move in yields weighed on technology shares, with market attention squarely focused on Nvidia's second-quarter results due after the close.

The chip designer has become a bellwether for artificial intelligence infrastructure spending, and options markets priced in significant post-earnings volatility. Investor positioning reflected caution, with flows rotating toward defensives as Treasury yields extended gains through the session.

The PCE reading—the Federal Reserve's preferred inflation gauge—reinforced expectations that policymakers will maintain restrictive rates longer than previously anticipated. The yield surge triggered algorithmic selling in duration-sensitive names, amplifying the tech-sector selloff.