Now Reading: S&P 500, Nasdaq rise on AI trade as US inflation cools
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S&P 500, Nasdaq rise on AI trade as US inflation cools
US stocks climbed on Wednesday, with the S&P 500 and Nasdaq gaining on renewed AI trade optimism. The rally came as July consumer price data met expectations, and a key inflation metric…
The Story in Brief
US stocks climbed on Wednesday, with the S&P 500 and Nasdaq gaining on renewed AI trade optimism. The rally came as July consumer price data met expectations, and a key inflation metric matched its slowest pace since March 2021.
Separate data showed producer prices rose less than feared, while oil prices slid. These factors eased fears of further interest rate hikes, boosting rate-sensitive assets. The Dow also rose, as markets awaited more inflation readings.
The Indian Opinion
The market's AI enthusiasm risks ignoring the Fed's next move. While tamer inflation numbers bring relief, one month's data does not prove the fight is over. The real test lies in upcoming consumer spending and jobs figures. Will the AI euphoria survive if the Fed stays hawkish on core services inflation? That is the question investors must answer.
Sources (3): ndtvprofit.com, ndtvprofit.com (2), ndtvprofit.com (3)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
