AI Stocks Surge as US Inflation Eases Ahead of Fed Decision

The US stock market finished just shy of a record on Wednesday after several AI stocks reported better growth for the spring than analysts expected. The S&P 500 rose 0.3%, its first gain since setting an all-time high last Friday, while the Dow Jones Industrial Average dipped less than 0.1% and the Nasdaq composite climbed 0.5%. Strong profit reports from companies like Super Micro Computer and CoreWeave bolstered hopes they can continue to deliver big-enough growth to justify their huge price gains.

Super Micro Computer, which sells servers and other equipment, jumped 19% after reporting earnings per share for the latest quarter that were 84% higher than analysts expected. It also gave forecasts for upcoming profit and revenue that topped analysts’ expectations. CoreWeave, which offers AI computing power to customers over the cloud, leaped 19.3% after reporting better revenue for the latest quarter than analysts expected, along with a milder loss.

The easing of yields in the bond market also provided support to Wall Street. Treasury yields fell after a report showed that US consumers paid prices for gasoline, groceries and other costs of living last month that were 3.4% higher than a year earlier. This deceleration could give the Federal Reserve more leeway to hold off on hikes to interest rates.