US stocks ended mixed on August 26, with the three major indexes diverging as caution gripped the market ahead of Nvidia's closely watched earnings report. The July PCE price index rose 3.7% year-over-year, still hovering near a three-year high, keeping investors on the sidelines regarding the Fed's policy trajectory. Tech stocks were split: Meta bucked the trend and advanced following a massive settlement, while Snap tumbled over 8%, dragging down the social media sector.

On the sector front, semiconductors broadly weakened, with Nvidia sliding over 1.5% to lead the decline. AI-related names diverged, with Palantir surging nearly 3% as a standout. Social media stocks were weighed down by Snap's sharp sell-off, though Meta rose on the resolution of its child safety litigation. Electric vehicle and clean energy names broadly retreated, with Tesla down over 1% and Plug Power off more than 4%. Crypto-linked equities pulled back alongside Bitcoin, with Mara dropping over 5%.

Semiconductors Weaken as Nvidia Falls 1.59% Ahead of Earnings

At the close, Nvidia (NVDA) fell 1.59% to $209.66 with turnover of roughly $27.3 billion, the highest across the entire market. Super Micro Computer (SMCI) declined 2.78% to $37.39, while Intel (INTC) bucked the trend to gain 0.87% to $88.24.

Nvidia is set to release its latest earnings, widely seen as a key barometer for the AI trade. Analysts expect robust revenue growth, but concerns persist over the return on AI capital expenditure. Separately, Nvidia announced that Alibaba's latest preview model Qwen3.8-Flash-Next has been supported on the GB300 NVL72 platform, delivering single-card throughput exceeding 16,000 tokens per second. The Fed's dilemma between taming inflation and maintaining market stability also adds uncertainty to tech valuations.

Meta Rises Over 1% on Settlement Finalization; Snap Plunges More Than 8%

At the close, Meta Platforms (META) gained 1.07% to $576.14 with turnover of roughly $17.9 billion. Snap (SNAP) tumbled 8.45% to $5.42.

Meta agreed to pay up to approximately $18 billion to settle child safety litigation with 47 US states and the District of Columbia. The agreement requires Meta to implement a daily two-hour usage limit for users under 18, ban nighttime use, remove like counts and personalized recommendations, with about 30% of the payout contingent on whether competitors adopt similar frameworks. Analysts view the settlement as significantly below the $1.4 trillion potential judgment the market had previously feared, eliminating a major near-term litigation overhang and serving as a positive catalyst for the stock. In contrast, Snap faced pressure as markets worried similar regulatory burdens could spread across the social media industry.

AI Names Diverge; Palantir Gains Nearly 3%

At the close, Palantir Technologies (PLTR) rose 2.73% to $177.44 with turnover of roughly $4.9 billion. Palantir continues to benefit from growing AI demand across government and enterprise sectors, with accelerating AI deployments in defense and commercial verticals, prompting multiple institutions to raise their price targets.

EV and Clean Energy Sector Retreats

At the close, Tesla (TSLA) fell 1.26% to $345.82 with turnover of roughly $9.7 billion. Plug Power (PLUG) dropped 4.41% to $2.17, while NuScale Power (SMR) sank 5.50% to $9.27. Worries over rising energy prices driven by US-Iran tensions failed to translate into a tailwind for the clean energy sector, as overall capital flows remained cautious.

Macro: PCE Stays Elevated, Fed Faces Dilemma

The US July Personal Consumption Expenditures (PCE) price index was flat month-over-month and rose 3.7% year-over-year, in line with expectations but still near a three-year high. Gasoline and diesel prices surged amid US-Iran tensions pushing energy costs higher. While Fed Chair Warsh has stressed the commitment to fighting inflation and some officials have called for rate hikes, the current data may prompt the central bank to hold rates steady at the September meeting.

Top 10 by Turnover

Nvidia (NVDA) — $209.66, down 1.59%, turnover ~$27.3B
Meta (META) — $576.14, up 1.07%, turnover ~$17.9B
Tesla (TSLA) — $345.82, down 1.26%, turnover ~$9.7B
Intel (INTC) — $88.24, up 0.87%, turnover ~$6.3B
Palantir (PLTR) — $177.44, up 2.73%, turnover ~$4.9B
Walmart (WMT) — $104.34, down 0.99%, turnover ~$2.9B
Boston Scientific (BSX) — $48.17, down 3.39%, turnover ~$1.7B
Nike (NKE) — $38.59, down 2.25%, turnover ~$1.4B
Super Micro Computer (SMCI) — $37.39, down 2.78%, turnover ~$1.2B
Nu Holdings (NU) — $15.17, up 0.20%, turnover ~$680M