Wall Street rises after in-line consumer inflation data, AI and chip stocks jump | Stock Market News

US stock indices recovered on Wednesday after official data showed inflation cooled in July, reducing concerns that the Federal Reserve could raise interest rates in the near term.

The Consumer Price Index (CPI) increased 3.4% year-on-year in July, slowing from a 3.5% rise in June, according to US government data.

As of 10:30 a.m. Eastern Time, the S&P 500 added 0.3%, the Dow Jones Industrial Average was up 0.1%, and the Nasdaq Composite was 0.7% higher.

In early trading, the Dow Jones Industrial Average was up 0.2% at 53,872.05. The broad-based S&P 500 rose 0.4% to 7,756.22, while the tech-rich Nasdaq Composite Index jumped 0.7% to 26,641.91.

Investors have been concerned that persistent inflation could prompt the Fed to raise interest rates in September, potentially creating a headwind for equities.

"This CPI report gives the market and the Fed the chance to take a big sigh of relief, because we're not in the situation where this inflation report is forcing the Fed's hands," said Adam Sarhan of 50 Park Investments.

Meanwhile, geopolitical risks remained elevated as tensions in the Middle East continued.

A senior Iranian source said there had been no progress in negotiations to revive the interim agreement reached in June or establish a timeline for its implementation. Shipping attacks also continued, Reuters reported.

CoreWeave shares jumped 22% after the artificial intelligence company reported quarterly revenue of $2.6 billion, more than double the figure from a year earlier.

AI and semiconductor stocks also advanced. Nvidia gained 2%, while Micron Technology climbed 4.4% and Broadcom added 1.4%.

Data-center operators IREN and Applied Digital surged 7.8% and 5.5%, respectively, amid continued investor interest in AI infrastructure.

Nebius Group, a neocloud computing company, jumped 15.5% following the release of its second quarter results.

Super Micro Computer shares soared 17% after the AI-server manufacturer projected fiscal 2027 revenue above Wall Street expectations.

Lumentum Holdings rose 6.8% after the photonic products maker exceeded analysts' estimates for its fourth-quarter results.

Cava Group gained 17.5% after the restaurant operator reported second quarter profit that topped Wall Street forecasts.

Crude oil prices were volatile on Wednesday, after forecasters cut projections for 2026 global oil demand, while attacks on ships in the Middle East continued amid uncertainity over Hormuz deal.

By 1315 GMT, Brent futures were down 49 cents, or 0.55%, at $88.42 a barrel. US West Texas Intermediate (WTI) crude fell 25 cents, or 0.3%, to $82.95.

The Organisation of Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026 to 580,000 barrels per day, it said in its monthly oil market report.

Meanwhile, the International Energy Agency slashed its own 2026 demand projections.

Gold prices rose on Wednesday, supported by a weaker US dollar after a US inflation data matched expectations.

By 09:25 a.m. EDT (1325 GMT), spot gold rose 1.1% to $4,416.29 per ounce. US gold futures gained 0.8% to $4,476.10.

Among other metals, spot silver climbed 1.9% to $65.87 per ounce. Platinum rose 1.6% to $1,772.51, and palladium gained 1.5% to $1,380.75.

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