US Markets
Home›US Markets›Indices›Stocks rise as AI strength and July CPI lift US indexes
Stocks rise as AI strength and July CPI lift US indexes
The odds of a rate hike at the next FOMC meeting fell to 39% after July CPI came in line with expectations, and the S&P 500 is tracking about 32% Q2 earnings growth.
US stocks moved higher as investors leaned into strength in AI and chip-related names after CoreWeave and Super Micro reported better-than-expected earnings, according to Yahoo Finance. The S&P 500 was up 0.45%, the Dow Jones Industrial Average gained 0.13%, and the Nasdaq 100 rose 1.00.
The session also got support from a favorable July CPI release. July CPI eased to 3.4% year over year from 3.5% in June, while core CPI declined to 2.5% year over year from 2.6%, matching expectations; on a month over month basis, headline CPI rose 0.1% and core CPI rose 0.2%. The outlet noted the core reading matched a 5.5-year low but remained above the Fed's 2% target.
Bond market pricing reflected the softer inflation data, with Treasury note prices supported and the odds of a rate hike at the next FOMC meeting reduced to 39% from 51% on Tuesday. Separately, oil prices were described as mildly lower, even with limited progress toward a US-Iran deal, while expectations for strong Q2 earnings remained a bullish factor for equities.
Yahoo Finance also pointed to earnings growth projections, saying the S&P 500 is tracking almost 32% earnings growth in Q2 versus projections of 23%, citing Bloomberg Intelligence. The outlet added that AI spending is expected to drive much of that growth, with AI infrastructure stocks contributing nearly 60% of S&P 500 earnings-per-share expansion in Q2.
Latest closeS&P 500 7,798.99 ▲0.7%|Nasdaq Comp. 26,803.03 ▲0.8%|Dow Jones 53,839.99 ▲0.1%