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Wall Street Rises on AI Hopes as US Inflation Eases
US stocks closed higher on Wednesday, with the S&P 500 and the Nasdaq rising on renewed enthusiasm for artificial intelligence stocks. The gains came as data showed July consumer prices increased in…
The Story in Brief
US stocks closed higher on Wednesday, with the S&P 500 and the Nasdaq rising on renewed enthusiasm for artificial intelligence stocks. The gains came as data showed July consumer prices increased in line with expectations, while a key inflation metric matched its slowest pace since March 2021.
Investors are now awaiting more inflation data to gauge the Federal Reserve's next move on interest rates. NDTV Profit reports that the AI trade drove the rally, with technology shares leading the advance.
The Indian Opinion
Two narratives are colliding: one that AI stocks are a bubble, and another that they are the only growth story left. Wednesday's rally suggests the market is betting on the latter, but the real test will be whether upcoming inflation data forces the Fed to keep rates higher for longer. The question is not whether the AI trade has legs, but whether it can survive a hawkish Fed.
Sources (2): ndtvprofit.com, ndtvprofit.com (2)
This story was synthesised by AI from the 2 sources linked above.
