- US stocks rose as July inflation met expectations, easing rate hike concerns
- Dow Jones gained 54.92 points, S&P 500 rose 25.42 points, Nasdaq up 157.75 points
- July CPI rose 0.1% monthly; annual inflation eased to 3.4% from 3.5% in June
US stocks moved higher on Wednesday after July inflation came in broadly as expected, easing fears of renewed price pressures and strengthening the case for the Federal Reserve to keep interest rates unchanged next month.
The Dow Jones Industrial Average was up 54.92 points, or 0.10%, at 53,846.77, while the S&P 500 gained 25.42 points, or 0.33%, to 7,753.62. The Nasdaq Composite climbed 157.755 points, or 0.60%, to 26,603.201, according to the latest market data provided.
The July consumer price index rose 0.1% month-on-month, with annual inflation easing to 3.4% from 3.5% in June. Core CPI, which excludes food and energy, increased 0.2% on the month and 2.5% annually. Both readings matched expectations.
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The benign inflation print shifted rate expectations. Fed funds futures were pricing roughly a 58% probability that the Fed will leave its benchmark rate at 3.50%-3.75% next month, up from more than 45% a week earlier.
The technology sector provided another leg to the rally, with investors encouraged by earnings from AI infrastructure companies CoreWeave and Super Micro Computer.
CoreWeave shares jumped about 21%, after the company reported a second-quarter adjusted operating income margin of 5%, above expectations, while revenue doubled from a year earlier. Super Micro Computer gained about 9% after issuing a strong earnings and revenue outlook.
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The AI rally extended across the semiconductor and technology space. Micron Technology rose more than 4%, Dell Technologies gained over 3%, while Cisco Systems advanced around 2%. U.S.-listed shares of Dutch AI infrastructure company Nebius surged more than 14%.
The market's optimism remains tempered by higher oil prices and geopolitical risks. US crude prices moved above $83 a barrel, with uncertainty over the reopening of the Strait of Hormuz adding to inflation concerns.
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