Tech Shares Surge as US Inflation Data Eases Rate Hike Fears

US equities made gains on Wednesday as July's inflation data came in line with expectations, easing pressure on the Federal Reserve to raise interest rates. The report showed consumer inflation slowed slightly to 3.4 percent from 3.5 percent in June.

This development provided a boost to technology shares, particularly those investing heavily in AI, which would have been penalized by higher interest rates. CoreWeave rose 18 percent after reporting soaring revenue, while Nvidia gained 3 percent in its wake.

However, not all markets reacted positively: Paris's CAC 40 and London's FTSE 100 closed marginally lower due to energy shares. Analysts remain cautious about the ongoing Middle East conflict and its impact on global oil demand.

The latest jobs report from last week showed the US economy lost over 20,000 jobs in July, indicating a slowing pace. Despite this, three Federal Reserve board members called for a rate increase at the central bank's last decision-making meeting, dissenting from the final decision to hold rates steady.