Wall Street indexes rose on Wednesday, driven by the Nasdaq outperforming its peers as upbeat earnings from artificial intelligence infrastructure firms boosted technology stocks, while largely in-line inflation data reinforced market bets that the U.S. Federal Reserve will hold interest rates steady, according to Reuters reporting.
AI Infrastructure Earnings Drive Nasdaq Gains
The Nasdaq Composite gained 168.73 points, or 0.64%, to reach 26,614.17 at 09:38 a.m. ET, according to market data. Propelled by chipmakers, the S&P 500 information technology sector advanced 1.2% while the wider semiconductor index climbed roughly 3%, positioning itself for its largest single-day surge in over a week. Nvidia gained 2%, Micron Technology added 4.4%, and Broadcom was up 1.4%, according to Reuters.
Buoyed by an increased annual capital expenditure outlook and stronger-than-expected second-quarter earnings, AI cloud provider CoreWeave experienced a 20% surge. Other infrastructure providers followed suit. Data-center operators IREN and Applied Digital gained 7.8% and 5.5%, respectively, while neocloud company Nebius Group jumped 15.5%, helped by its second-quarter results. According to Reuters, Super Micro Computer led the S&P 500 with a 17% advance after the AI-server manufacturer projected fiscal 2027 revenue above Wall Street forecasts.
Consumer Prices and Federal Reserve Rate Expectations
Figures revealed a minor uptick in U.S. consumer prices during July, which diminishes the rationale for the central bank to raise borrowing costs next month. Traders are now pricing in a 55% chance of the U.S. Federal Reserve holding rates at its September meeting, according to CME’s FedWatch Tool. Before the data was released, they were split between a hike and no change.
“These backward-looking numbers kind of put the Fed in exactly the position they want to be. They don’t have to do anything. It’s the narrative they want, that we’re seeing some cooling, but there’s no collapse in the economy,” said Luke Rahbari, CEO of Equity Armor Investments, as reported by Reuters. Rahbari added that wild swings in oil and gasoline, and starts and stops to the war in the Middle East, could totally change day by day.
Broader Market Performance and Sector Movers
Alongside the technology sector gains, the Dow Jones Industrial Average rose 110.53 points, or 0.21%, to 53,902.38, and the S&P 500 gained 25.54 points, or 0.33%, to 7,753.74, according to market figures. On the New York Stock Exchange, stocks that advanced outnumbered those that declined by a factor of 1.54 to 1, while the Nasdaq saw a 1.53-to-1 advancer-to-decliner ratio.
Surpassing Wall Street’s second-quarter projections for both sales and core profit, Cava Group climbed 17.5% outside of the technology sector. Per Reuters, Lumentum Holdings rose 6.8% after the photonic product manufacturer surpassed fourth-quarter estimates and issued a first-quarter revenue outlook that exceeded analysts’ projections.
Did You Know?
The gains brought the tech-heavy Nasdaq within 2% of a record high. Positive earnings reports had already driven the S&P 500 and the Dow to reach new highs the previous week, boosting overall market sentiment.
Frequently Asked Questions
How did Wall Street indexes perform on Wednesday?
The Dow Jones Industrial Average rose 0.21%, the S&P 500 gained 0.33%, and the Nasdaq Composite climbed 0.64%, according to Reuters market data.
What drove the gains in technology stocks?
Upbeat earnings and raised forecasts from artificial intelligence infrastructure firms—including CoreWeave and Super Micro Computer—boosted semiconductor and cloud computing stocks.
What are traders predicting for the next Federal Reserve meeting?
Traders are pricing in a 55% chance that the U.S. Federal Reserve will hold rates at its September meeting following July consumer price data, according to CME’s FedWatch Tool.
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