The Nasdaq Composite (^IXIC +0.49%) gained 0.54% to 26,588, and the S&P 500 (^GSPC +0.50%) rose 0.26% to 7,749 after inflation data reassured traders. The Dow Jones Industrial Average (^DJI +1.02%) slipped 0.04% to 53,770.
S&P 500 Index
Key Data Points
Gold prices rose 0.60% to $4,407.44 as of U.S. market close, and the 10-Year Treasury yield gained 0.004% to 4.69%. Industrials led the sector gainers, while consumer cyclicals and communication services lagged.
Today's biggest moves
Building on earlier momentum, Nvidia rallied alongside the broader artificial intelligence (AI) sector today. Super Micro Computer and CoreWeave both surged 19% following impressive quarterly results. Optical manufacturer Lumentum Holdings soared 14% after its earnings showed solid AI demand. Wendy’s gained as news of a potential takeover emerged, and Home Depot slipped as investors reacted to news that its CEO would take medical leave.
What this means for investors
The July Consumer Price Index data matched expectations today, easing fears of a Federal Reserve rate hike and boosting markets as investors regained some of their risk appetite. Plus, yesterday’s blowout earnings from Super Micro Computer showed that the AI infrastructure boom looks likely to continue, helping tech stocks to rally.
The Dow lagged as traders priced in limited traffic through the Strait of Hormuz and stalled peace talks. To a large extent, another strong earnings season has offset uncertainty about high energy prices and geopolitical tensions — Bloomberg analysis shows that so far, over 85% of companies have beaten analyst expectations. However, some analysts warn that these highs may not last and advise caution.
