Stock Market Midday, Aug. 26: Markets Muted as Investors Await Nvidia Earnings
2026-08-26 16:27
•Emma Newbery •The Motley Fool
•••••••• •••• Axe Cap view
Nvidia and Inflation Jitters Keep JSE Cautious
Markets in the US hold steady as inflation surprises and Nvidia earnings stir nerves — a quiet day for South African stocks.
The US inflation data at 3.7% for July showed the cost pressures aren’t easing as fast as hoped, which keeps interest rate expectations sticky. That’s the backdrop as investors wait on Nvidia’s earnings report, a key proxy for the AI growth story. Nvidia’s revenue is expected to surpass $100 billion, but the question is whether investors accept the high capital spending needed to sustain this surge. For us, the reverberations are mostly indirect. The rand remains vulnerable to US dollar strength if global growth fears persist, making USD/ZAR a key barometer. South African banks like Standard Bank and FirstRand benefit from a firming rate environment but could stumble if inflation forces the Reserve Bank to tighten further. Tech-heavy counters like Naspers and Prosus remain in a holding pattern, watching global tech sentiment closely. this is just our opinion and not financial advice
Stay cautious on JSE tech stocks and trim positions in high-beta names. Prefer selectively owning domestic banks like Standard Bank, which may benefit from rate hikes. Watch USD/ZAR closely for further rand weakness signals.
- USD/ZAR
- Standard Bank
- Naspers
- Inflation surprises derailing rate outlook
- Nvidia’s earnings disappointing and sparking tech sell-off
6/10
Major stock indexes traded mixed on Aug. 26, 2026, as July inflation data came in hotter than expected at 3.7%, weighing on sentiment. The S&P 500 was essentially flat while the Nasdaq and Dow declined slightly. Investors are awaiting Nvidia's after-hours earnings report, which could provide insights into the sustainability of the AI boom. Notable movers included Meta Platforms following a $17 billion legal settlement, Abercrombie & Fitch surging 40% on strong earnings, and Alibaba declining on a $10 billion share placement announcement.
Our take is based on reporting first published by The Motley Fool.