AI Stocks Lead Charge as Inflation Rate Slows

The US stock market is poised to break its five-day losing streak after several AI stocks reported better-than-expected growth for the spring. The S&P 500 added 0.3% and the Nasdaq composite was 0.7% higher as of 10:30 a.m. Eastern time.

Super Micro Computer, which sells servers and other equipment, jumped 14.2% after reporting earnings per share for the latest quarter that were 84% higher than analysts expected. CoreWeave, which offers AI computing power to customers over the cloud, leaped 18.6% after reporting better revenue for the latest quarter than analysts expected.

The easing of inflation concerns is also contributing to the market's gains. The US consumers paid prices for gasoline, groceries and other costs of living last month that were 3.4% higher than a year earlier, which is lower than the 3.5% inflation rate in June. This deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates.