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Update: US Equity Indexes Trade Mixed in Final Leg as Investors Await Nvidia's Earnings

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(Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes traded mixed while most government bond yields rose after the Federal Reserve's preferred inflation gauge accelerated in July and as investors awaited AI bellwether Nvidia's (NVDA) quarterly earnings.

The Dow Jones Industrial Average edged 0.1% lower to 53,501.1 ahead of Wednesday's close. The S&P 500 clawed up 0.1% to 7,684.1, and the Nasdaq Composite was steady at 26,157.8.

In economic news, the headline personal consumption expenditure price index rose by 0.2%, following a 0.1% decline in June, the Bureau of Economic Analysis reported Wednesday. That's above the consensus for a 0.1% gain in a Bloomberg-compiled survey, keeping the annual headline rate at 3.7%, which also exceeded the expected 3.6% print.

The Fed's preferred core measure, which excludes food and energy, climbed 0.2% in July, as expected. That's faster than the June print of 0.1%. The annual core gauge held steady at 3.3%, as projected.

Most US Treasury yields rose, with the 10-year yield up 2.1 basis points to 4.66% and the two-year climbed two basis points to 4.22%.

In geopolitical news, the Iranian military said it reached a revenue-sharing deal with Oman on the Strait of Hormuz, Bloomberg reported. "Agreements have been reached regarding each country's share of the strait's waters as well as Iran and Oman's share of its revenues," Bloomberg cited the Islamic Revolutionary Guard Corps' spokesman Hossein Mohebbi on the state-run Sepah News agency.

However, Reuters cited the IRGC as saying the strait would not open unless the US met Tehran's conditions under an interim ceasefire agreement that was struck in June before unravelling. Those conditions include an end to the US blockade on Iranian ports, compensation and removal of sanctions, the news outlet said.

"We have our own tools, and we also know the game," Iran's Economy Minister Ali Madanizadeh said while referring to Tehran's experience circumventing US sanctions, according to a report from Al Jazeera, a Middle Eastern broadcaster. Tehran could potentially "go on the offensive" and was confident that many countries would effectively reject US President Donald Trump's threats to cut off all links with Iran, he added.

The front-month US West Texas Intermediate crude oil contract slipped 0.5% to $81.96 per barrel, and global benchmark North Sea Brent declined 1.3% to $87.45 per barrel.

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US equity indexes ended higher Tuesday as crude oil prices and government bond yields dropped, after the US Treasury Department started a campaign to impose economic sanctions on Iran.* The Treasury is targeting aviation, shipping, technology, gold and digital assets such as cryptocurrency to choke off Iran's economy, CNN reported. The US is also threatening new sanctions on countries that refuse to cut economic ties with Tehran.* Iran pledged to fight back against expanded US sanctions aimed at isolating its economy, expressing confidence that major trading partners would resist the pressure campaign and saying that Washington was keen to revive talks, Reuters reported.* The Conference Board's measure of consumer confidence fell to 89.4 in August from 90.2 in July, compared with expectations for no change in a survey compiled by Bloomberg.* New-home sales fell to a 607,000 annual rate in July from an upwardly revised 678,000 in June, below the 620,000 expected in a survey compiled by Bloomberg, and down 6.3% from a year ago.* October West Texas Intermediate crude oil fell $3.96 to settle at $81.05 per barrel, while October Brent crude, the global benchmark, was last seen down $4.92 at $87.25.* Moderna (MRNA) shares were up roughly 14%, the top gainer on the S&P 500, after Wolfe Research upgraded the company's stock to peer perform from underperform.* Shell (SHEL) has drawn interest from potential bidders, including ExxonMobil (XOM), LyondellBasell (LYB) and Apollo Global Management (APO), for its US chemicals assets, which could fetch up to $8 billion, the Financial Times reported Monday, citing people familiar with the matter. LyondellBasell shares were down 4%, the worst performer on the S&P 500.

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Update: US Equity Indexes Advance Amid Slumping Treasury Yields, Crude Oil

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes rose as technology topped sector charts while government bond yields and crude oil extended declines after the Treasury Department began a campaign to tighten sanctions against Iran.The Nasdaq Composite advanced 0.4% to 26,090.8, the S&P 500 climbed 0.2% to 7,667.4 and the Dow Jones Industrial Average edged up 0.3% to 53,558.5. Energy and consumer staples led the decliners.The Treasury is targeting aviation, shipping, technology, gold and digital assets such as cryptocurrency to choke off Iran's economy, CNN reported. The US is also threatening damaging new sanctions on countries that refuse to cut economic ties with Tehran.Iran pledged to fight back against expanded US sanctions aimed at isolating its economy, expressing confidence major trading partners would resist the pressure campaign and saying that Washington was keen to revive talks, Reuters reported.Hours after the US sanctioned dozens of Chinese entities and threatened to target an unspecified "major financial institution" for its dealings with Tehran, Beijing responded by saying its relationship with Iran "should not be disrupted or undermined," Bloomberg reported. China will take "all necessary measures" to safeguard its interests, Foreign Ministry spokesperson Lin Jian was cited as saying.Meanwhile, Iran and Oman outlined a proposal to establish a temporary joint shipping lane and launch a demining effort in the Strait of Hormuz, the CNN news report said.The front-month US West Texas Intermediate crude oil contract retreated 3.2% to $82.29 per barrel, and global benchmark North Sea Brent slumped 4% to $88.50 per barrel.US Treasury yields remained lower in the final stretch of trading. The 30-year slumped 6.1 basis points to 5.17%, the 10-year dropped 6.7 basis points to 4.64% and the two-year retreated 4.5 basis points to 4.19%.

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Update: Technology Helps Push US Equity Indexes Higher in Midday Trading

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