The Dow Jones Industrial Average fell roughly 122 points, or 0.23%, on Tuesday, ending a three-day winning streak as investors awaited Nvidia’s quarterly earnings. Nvidia, whose market capitalization exceeds $5 trillion, remains a bellwether for the semiconductor industry and the broader AI trade. July’s PCE price index (Fed’s preferred measure of consumer inflation) rose 3.7%, above the 3.6% consensus forecast, reinforcing concerns that the Federal Reserve may keep interest rates higher for longer. Investors expected Nvidia to report approximately $92 billion in second-quarter revenue, up 97% year over year, with earnings per share near $2.09. The stock slipped about 1% intraday after rising 2.2% on Monday and ending a seven-day losing streak. Nvidia has declined after earnings for four consecutive quarters despite regularly beating estimates, highlighting the high expectations already reflected in its share price. Its November 2024 addition to the Dow also means its movements directly affect the price-weighted index. The results are viewed as a test of the AI capital-spending cycle: stronger GPU (graphics processing unit) demand from cloud providers and enterprises could validate planned hyperscaler spending, while weaker guidance could raise questions about whether the AI boom’s most profitable phase has peaked.