US stocks traded mostly flat on Wednesday after Personal Consumption Expenditures (PCE) data showed inflation remained sticky ahead of the Federal Reserve's Jackson Hole gathering, while investors also counted down to Nvidia's (NVDA) earnings report.

The Dow Jones Industrial Average (^DJI) declined by 0.2%, the S&P 500 (^GSPC) slipped 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) fell 0.3% after posting broad gains on Tuesday. The muted move reflected a market balancing fresh inflation data, big-cap tech earnings, and a busy policy calendar that can reshape rate expectations.

Meta stock (META) wavered after the company agreed to settle a social media addiction trial for roughly $16.7 billion. The case centered on allegations from 29 states that Meta developed products to hook young users, misled consumers about their safety, and improperly collected personal data.

Tech and chip stocks face their next major test after the closing bell, when Nvidia opens its books in what has become a quarterly benchmark for the health of the artificial intelligence trade. Expectations are high heading into the report, as investors continue to focus on companies' ability to generate returns from their large AI investments.

Markets also digested a fresh inflation reading from the Federal Reserve's preferred gauge. The core Personal Consumption Expenditures (PCE) Index, which excludes volatile food and energy prices, rose 3.3% in July, matching expectations and unchanged from the prior month.

The inflation update comes amid turbulence in the bond market and ahead of the annual Jackson Hole gathering of Fed policymakers this week, where Chairman Kevin Warsh is scheduled to deliver a speech on the central bank's future plans. For traders, that combination keeps attention on whether policymakers use the meeting to signal any shift in how they see inflation progress and interest-rate settings.

Abercrombie & Fitch (ANF) also reported earnings on Wednesday morning and raised its guidance, sending the stock up 32%.