Wall Street Rises, Bolstered by AI and Muted CPI
US stock markets mostly closed higher in Wednesday's trading (Aug 12), driven by solid performance reports from AI companies and relatively controlled US inflation data. The S&P 500 rose approximately 0.3%, nearing a record closing high, while the Nasdaq gained 0.7%; the Dow Jones, however, ended nearly flat.
Artificial intelligence-related stocks were the primary market drivers. CoreWeave surged 19.3% after posting sales that exceeded forecasts, while Super Micro Computer (SMCI) jumped around 19% after issuing revenue projections that beat expectations.
Optimism also extended to the semiconductor sector. Nvidia rose about 3%, Oracle gained 5.4%, and Micron surged 4.9%. Sentiment was further boosted by strong results from Tencent and new investments by Temasek in SK Hynix and Samsung, reinforcing optimism regarding AI infrastructure spending.
On the macroeconomic front, US CPI data showed that core inflation remained relatively stable. This eased pressure on the Federal Reserve to raise interest rates again and provided additional support for technology stocks, which are sensitive to yield movements.
However, not all tech stocks enjoyed gains. Several hyperscalers reversed earlier advances; Microsoft fell 2.3%, Meta weakened 3.4%, and Amazon lost 1.8%. Concerns regarding high AI capital expenditure also prompted investors to become more selective.
Newsmaker Analysis: Wall Street received a dual boost from inflation data that was no hotter than expected and renewed optimism surrounding the AI business. However, rising energy prices due to supply uncertainties in the Middle East remain an inflation risk. As long as Treasury yields do not surge again, technology stocks are likely to remain a key pillar of support for US indices.
Source: Newsmaker.id
