U.S. inflation cools in July as technology stocks lead gains on Wall Street.
Wall Street closed on mixed terms on Wednesday, with the Dow Jones Industrial Average edging lower while the S&P 500 and Nasdaq advanced, amid some optimism over the moderation of U.S. inflation in July.
At the close of trading, the Dow Jones fell 0.04% to 53.770 points, while the S&P 500 gained 0.26% to 7.748 points, and the tech-heavy Nasdaq climbed 0.54% to 26.588 points.
The U.S. Consumer Price Index (CPI) eased by one-tenth of a percentage point in July to 3.4%, helped by lower energy prices and in line with expectations that fuel costs would continue to decline following the spike triggered by the war in Iran.
Core inflation, which excludes volatile food energy and prices, fell to 2.5%, down one-tenth of a percentage point from June, according to the data realized by the Bureau of Labor Statistics (BLS) on Wednesday.
Although the annual inflation rate remains above the Federal Reserve’s (Fed) 2% target set, it is still below the 4.2% peak recorded in May, when inflation reached its highest level since April 2023.
West Texas Intermediate (WTI) crude oil prices rose slightly yesterday to $83.27 per barrel, following the latest attacks in the Middle East by the United States and Houthi rebels in Yemen.
At the sector level, technology stocks led gains, rising 1.06%, despite continued concerns over the sustainability of the artificial intelligence (AI) boom, which has contributed to volatility, particularly in semiconductor stocks.
For example, Dell Technologies surged 9.9% after Goldman Sachs upgraded its investment rating on the stock, and Micron Technology gained 5.1% on the back of a positive outlook for future AI-related revenue.
Among companies reporting quarterly results, CoreWeave stood out with a 19% gain, as did Super Micro Computer; both beat analysts’ expectations.
