The S&P 500 rose on Wednesday on the back of a tame U.S. inflation report and tech gains led by artificial intelligence plays CoreWeave and Super Micro Computer
The Dow Jones Industrials wavered and lost 21.58 points to conclude Wednesday at 53,770.27.
The much-broader index advanced 20.3 points to 7,748.50.
The NASDAQ Composite sprang back up 143.04 points to 26,588.49.
Meanwhile, the latest quarterly results and guidance from CoreWeave and Super Micro Computer reassured investors that demand in the artificial intelligence buildout is stable.
CoreWeave shares jumped 18% after the cloud infrastructure mainstay’s second-quarter adjusted operating income margin of 5% exceeded expectations, while its revenue doubled from a year ago. Super Micro Computer added 13% following a strong earnings and revenue
forecast for the first quarter.
Other stocks related to AI also gained. Dell Technologies and Micron Technology advanced more than 4% and 6%, respectively, while Cisco Systems rose more than 2%. Additionally, U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 16%.
Other stocks related to AI also gained. Dell Technologies and Micron Technology advanced more than 6% and nearly 7%, respectively, while Cisco Systems rose more than 1%.
Additionally, U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 27%.
July’s consumer price index came in as expected, with headline rising 0.1% on the month and the annual inflation rate landing at 3.4%.
Core CPI, which excludes food and energy, advanced 0.2% last month and 2.5% on the year. The annual rate for both headline and core CPI marked a slight decrease from June.
This comes as the Federal Reserve has been laser focused on the impact higher pricing pressures are having on the U.S. consumer, with three dissenters at the last meeting voting to raise rates.
Those concerns have yet to abate, with U.S. oil prices pushing above $83.00 a barrel Wednesday, as hopes of a reopening of the Strait of Hormuz dwindle.
Prices for the 10-year Treasury tailed off, raising yields back to Tuesday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices weakened 21 cents to $82.99 U.S. a barrel.
Gold prices gained $27.90 to $4,469.50 U.S. an ounce.
