CPI Matches Forecast and AI Earnings Send Nasdaq Higher

Overview

• Markets moved after Wednesday's U.S. consumer price index for July came in exactly as expected with headline inflation up 0.1% month‑on‑month and 3.4% year‑on‑year and core inflation rising 0.2% month‑on‑month and 2.5% year‑on‑year.
• Stronger‑than‑expected quarterly results and guidance from AI and data‑center infrastructure firms drove sharp gains in specific names such as CoreWeave and Super Micro Computer and lifted broader technology shares.
• Technology and semiconductors led the rally with the Nasdaq outperforming the Dow and S&P and chipmakers like Nvidia, Micron and Broadcom posting notable rises as the semiconductor index jumped roughly 3%.
• Traders scaled back bets on a September rate hike with the CME FedWatch tool putting the probability that the Fed will keep rates unchanged at about 55%.
• Geopolitical tensions in the Middle East and the Strait of Hormuz remained a background risk and Brazil's Ibovespa traded near stability, with investors watching oil prices for any change that could push inflation and Fed policy expectations again.