New york: US stocks closed mostly higher Wednesday as inflation data met market expectations and strong corporate results fueled gains in artificial intelligence-related shares. The S and P 500 rose 0.26%, or 20.3 points, to finish at 7,748.5, while the Nasdaq Composite gained 0.54%, or 143.04 points, closing at 26,588.49. In contrast, the Dow Jones edged down 0.04%, or nearly 21.58 points, to 53,770.27. The CBOE Volatility Index, also known as the 'fear index,' fell 4.78% to 14.55, marking its lowest level since January.
According to Anadolu Agency, the US Consumer Price Index rose 0.1% month-on-month and 3.4% annually in July, aligning with market expectations. Core inflation, which excludes volatile food and energy prices, increased 0.2% on a monthly basis and 2.5% year-on-year. Both headline and core inflation rates eased slightly from June. Following the data release, money markets increased bets that the US Federal Reserve would leave its policy rate unchanged at its September meeting, with Fed funds futures pricing in an approximately 60% probability of maintaining the benchmark rate within the 3.5%-3.75% range.
Technology shares led the day's advance after robust quarterly results and forecasts from companies like CoreWeave and Super Micro Computer reinforced expectations of sustained demand for AI infrastructure. CoreWeave shares surged around 18% following a doubling in quarterly revenue and exceeding expectations on its adjusted operating margin. Similarly, Super Micro Computer climbed 17% after issuing stronger-than-expected revenue and earnings guidance for its fiscal first quarter. Other AI-linked shares also saw gains, with Dell Technologies rising around 10%, Micron Technology nearly 5%, and Cisco Systems more than 2.8%. US-listed shares of Dutch cloud infrastructure company Nebius surged more than 34%.
Additionally, gold prices rose 0.9% to $4,410 per ounce, while the US benchmark West Texas Intermediate crude slipped 0.3% to around $82.90 per barrel.
In contrast, European stock markets closed lower as investors monitored uncertainty surrounding diplomatic efforts in the Middle East. The STOXX Europe 600 index declined 0.16% to close at 659.48 points. Germany's DAX 40 fell 0.23% to 26,331.07 points, and France's CAC 40 lost 0.46% to finish at 8,674.94. Meanwhile, Italy's FTSE MIB edged down 0.01% to 53,698.66, and the UK's FTSE 100 decreased 0.1% to 10,833.15. Spain's IBEX 35 index fell 0.05% to end the session at 20,204.4.