Wall St gains as AI earnings lift tech, inflation data supports rate-hold bets

Business Recorder reported that US benchmark indexes advanced on Wednesday, with the Nasdaq the strongest of the three as upbeat results from firms building artificial intelligence infrastructure lifted technology shares. Consumer prices in July rose only slightly, a reading that weakened the case for a Federal Reserve rate hike next month. Markets now assign a 55% likelihood that the Fed leaves borrowing costs unchanged in September, according to the CME FedWatch Tool, compared with evenly divided views on a hike or a pause before the data arrived.

Costlier energy linked to hostilities in the Middle East had boosted bets on rate increases, and Fed Chair Kevin Warsh has kept forward guidance restrained. Inflation releases have drawn closer scrutiny as a result. Talks to restore the June interim accord have not advanced, according to a senior Iranian source, and shipping attacks are still occurring.

Chipmakers led the S&P 500 technology sector, which climbed 1.2%, with Nvidia up 2%, Micron Technology gaining 4.4% and Broadcom rising 1.4%. CoreWeave jumped 20% after lifting its yearly capex outlook and beating second-quarter estimates, while Super Micro Computer climbed 17% after projecting fiscal 2027 sales ahead of market expectations. Early on, the Dow was up 110.53 points at 53,902.38, the S&P 500 had added 25.54 points to reach 7,753.74, and the Nasdaq Composite was 168.73 points higher at 26,614.17.