US stocks finished mostly higher on Wednesday after a closely watched inflation report landed right in line with expectations, easing worries that the Federal Reserve might feel pressure to raise interest rates. The tech-heavy Nasdaq led the way, while the S&P 500 posted a modest gain and the Dow slipped just below the flat line. With earnings season winding down, the July Consumer Price Index was the day’s main event, and its lack of an upside surprise was enough to keep buyers engaged.
What Moved Markets
The Nasdaq Composite climbed 143.04 points, or 0.54%, to close at 26,588.49, powered by strength in semiconductor and artificial intelligence names. The S&P 500 added 20.30 points, or 0.26%, to finish at 7,748.50. The Dow Jones Industrial Average was the laggard, easing 12.82 points, or 0.02%, to 53,779.03 as weakness in health care and consumer staples offset gains elsewhere.
The tone was set before the opening bell by the July CPI report. Consumer prices rose 0.1% for the month, while core CPI, which strips out food and energy, increased 0.2%. Both figures matched economists’ forecasts. The annual inflation rate ticked up to 3.4%, still above the Fed’s 2% target, but the absence of a hot reading gave a lift to Treasuries and pushed yields lower. Investors read the data as keeping the Fed on hold rather than pushing it toward a rate hike, which supported risk appetite in growth-oriented stocks.
Notable Movers
CoreWeave (CRWV) was a standout, surging as much as 24% after the data-center operator delivered results that reinforced confidence in the ongoing AI infrastructure boom. The company has become a bellwether for spending on the computing power behind artificial intelligence.
Super Micro Computer (SMCI) rallied sharply, gaining close to 18% at its best levels after topping earnings expectations. The server maker’s results added to the day’s upbeat mood around AI-linked hardware.
Cava Group (CAVA) jumped roughly 16% after the fast-casual Mediterranean chain reported strong second-quarter results that beat Wall Street estimates, a bright spot in an otherwise cautious consumer sector.
Neurocrine Biosciences (NBIX) fell about 6.5%, weighed down by renewed safety concerns tied to its Prader-Willi syndrome treatment and lingering questions over drug-pricing pressures on its core products.
Performance Food Group (PFGC) dropped roughly 4.5% after the food-service distributor missed fourth-quarter forecasts, underscoring the uneven backdrop for parts of the consumer economy.
Looking Ahead
Attention now turns to Thursday’s July Producer Price Index, which measures inflation at the wholesale level and could either confirm or complicate the picture painted by the CPI. A cooler PPI would strengthen the case that price pressures are contained heading into the Fed’s September meeting, while a hot number could revive the rate-hike debate. Investors will also keep an eye on the last wave of quarterly earnings and any fresh commentary from Fed officials. For now, in-line inflation and resilient AI demand have kept the major indexes hovering near record territory, but with valuations stretched, traders are likely to stay sensitive to any surprise in the data.