Tech Stocks Rebound as US Inflation Rate Slows
The US inflation rate slowed last month, easing concerns about interest rates and boosting confidence in tech stocks.
Tech firms led a mixed day for markets on Thursday, with investors returning to the sector after a summer rout. The consumer price index (CPI) report for July showed inflation at 2% was in line with forecasts.
The Federal Reserve still has room to keep borrowing costs stable, but expectations are that it will tighten at some point due to stubbornly high inflation above its 2% target for over five years.
Auction of 10-year US Treasuries resulted in the highest yield since 2007 during the global financial crisis, indicating investors expect rates to rise.
Nick Wilson at Saxo Markets said: 'July marked 65 consecutive months with inflation running above target. Nevertheless, odds of a rate hike in September were pushed out by the US CPI report.'