Wall Street’s main indexes rose on Wednesday, driven higher as upbeat earnings from artificial intelligence infrastructure firms boosted technology stocks according to Reuters. At the same time, largely in-line inflation data reinforced expectations that the US Federal Reserve will hold interest rates steady according to Theedgemarkets. Data showed that US consumer prices increased slightly in July, which weakened arguments for the central bank to hike interest rates at its upcoming meeting.
Wall Street Gains on Artificial Intelligence Earnings and Inflation Data
Trading activity reflected growing confidence among market participants regarding the central bank’s path. Traders priced in a 55% chance of the Federal Reserve holding interest rates at its September meeting, based on CME’s FedWatch Tool, shifting from an even split between a hike and no change prior to the inflation data release.
Technology Sector and AI Infrastructure Boost Market Indexes
The tech-heavy Nasdaq outperformed its peers, moving within 2% of a record high during the session. The S&P 500 information technology sector jumped 1.2%, with major chipmakers leading the advance. Nvidia gained 2%, Micron Technology added 4.4%, and Broadcom rose 1.4%. The broader semiconductor index climbed about 3%, tracking its biggest one-day jump in more than a week.
Artificial intelligence infrastructure providers experienced sharp surges following strong financial reports and raised forecasts:
- CoreWeave surged 20% after lifting its annual capital spending forecast and beating second-quarter earnings estimates.
- Super Micro Computer climbed 17%, topping the S&P 500 after the AI-server maker issued a fiscal 2027 revenue forecast above Wall Street expectations.
- Nebius Group jumped 15.5% on the strength of its second-quarter results.
- Data centre operators IREN and Applied Digital gained 7.8% and 5.5%, respectively.
These earnings underscore robust artificial intelligence-related demand as Wall Street giants continue to commit billions of dollars to scale up artificial intelligence capabilities.
Market Performance and Broader Trading Metrics
At 9:38 a.m. ET, the Dow Jones Industrial Average rose 110.53 points, or 0.21%, to 53,902.38. The S&P 500 gained 25.54 points, or 0.33%, to 7,753.74, while the Nasdaq Composite gained 168.73 points, or 0.64%, to 26,614.17. Across the broader market, advancing issues outnumbered decliners by a 1.54-to-1 ratio on the New York Stock Exchange and by a 1.53-to-1 ratio on the Nasdaq.
Additional corporate earnings contributed to positive sentiment outside the technology sector. Cava Group advanced 17.5% after the restaurant chain beat Wall Street expectations for second-quarter sales and core profit. Lumentum Holdings added 6.8% after the photonic product maker forecasted first-quarter revenue above analysts’ expectations while beating fourth-quarter estimates.
Economic Context and Geopolitical Pressures
Despite the positive session, market observers noted ongoing macroeconomic and geopolitical risks. Luke Rahbari, CEO of Equity Armor Investments, noted that backward-looking inflation numbers put the central bank in a comfortable position of seeing cooling without an economic collapse, but warned that market conditions could shift rapidly due to ongoing volatility.
Economic data and inflation figures have drawn increased scrutiny because elevated energy prices resulting from conflict in the Middle East have previously raised rate-hike bets, while Federal Reserve chair Kevin Warsh has maintained firm, muted forward guidance. Volatility persisted internationally as a senior Iranian source indicated no progress had been made in talks to revive an interim deal agreed in June, and shipping attacks continued.
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