S&P500, Nasdaq End Higher As Fresh CPI Data Calms Earlier-Than-Expected Rate Hike Fears — GOOGL, DJT, WEN, BE, SNDK In Focus

• The S&P 500 ended 0.3% higher, while the Nasdaq 100 added 0.5% and the Dow Jones Industrial Average marginally eased 0.04%.
• S&P 500 hovered near record highs at market close. 
• Super Micro was the top gainer in the S&P 500 after posting strong results. 

The S&P 500 and Nasdaq ended higher on Wednesday after inflation data came in as expected, alleviating fears that the Federal Reserve could hike rates in its September meeting. 

The S&P 500 ended 0.3% higher, while the Nasdaq 100 added 0.5% and the Dow Jones Industrial Average marginally eased 0.04%. The Russell 2000, which tracks stocks with small market capitalizations, added 0.6%.

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) rose 0.2%, and Invesco QQQ Trust (QQQ) ended Wednesday 0.6% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was flat.

Meanwhile, the VanEck Semiconductor ETF (SMH) jumped 2%, taking support from strength in Nvidia (NVDA), Micron Tech (MU) and ASML Holdings (ASML), while the broader Vanguard Information Technology ETF (VGT) gained 1%, led by a 10% jump in SpaceX (SPCX) stock. 

Retail sentiment on Stocktwits for QQQ and DIA was ‘bearish’ with ‘high’ message volumes and was ‘neutral’ on the SPY.

US Market Drivers

In July, the consumer price index aligned with forecasts, as monthly headline inflation rose 0.1%, bringing the year-over-year rate to 3.4%. Core CPI, which excludes volatile energy and food components, increased 0.2% for the month and 2.5% compared to the prior year. Both core and headline annual metrics reflected a marginal slowdown relative to June's figures.

Inflation concerns have had a grip on investor sentiment over the past few trading sessions, especially after three officials dissented on July 29 in favor of raising rates. 

“The big surprise with a report that had no surprises is that a situation where inflation isn’t reaccelerating, coupled with the most recent, weak jobs report gives the Fed more time to wait,” Chris Zaccarelli at Northlight Asset Management told Bloomberg.

The next Federal Reserve rate announcement meeting is due in September, and there is another inflation release scheduled before the central bank meets. 

While prices remain elevated, the latest CPI should give investors greater confidence that peak inflation appears to be behind us, according to Bret Kenwell at eToro. 

Meanwhile, CoreWeave (CRWV) and Super Micro (SMCI) stock rallied following strong quarterly earnings, which also helped assure investors that demand for AI tools and allied services remains stable. 

Key Trending Stocks

Alphabet (GOOG, GOOGL): The Google parent company restructured the command chain of its Google DeepMind unit, in an effort to overcome product delays and dominate the generative artificial intelligence market.

 Trump Media & Technology Group (DJT): A news outlet and a press freedom advocacy group filed a federal lawsuit on Wednesday seeking to stop a program that sells early access to President Donald Trump's public statements. 

Wendy’s Co. (WEN): A report said Nelson Peltz’s Trian Fund Management is preparing a potential bid to take the U.S. burger chain private. 

Bloom Energy (BE): Nebius (NBIS) management stated that the “switch to Bloom” enhanced its planned 300-megawatt AI data center in Vineland, New Jersey. 

Sandisk Corp. (SNDK): The memory company and Kioxia unveiled a new 9th-generation 2Tb QLC 3D flash memory technology aimed at the growing storage demands of AI infrastructure.

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