US Stocks Rise on Inflation Data and AI Earnings

The US stock market saw gains across the board on Wednesday as inflation data met expectations and AI infrastructure companies reported strong earnings.

The Dow Jones Industrial Average rose by 68 points, while the S&P 500 climbed 0.35% and the Nasdaq Composite gained 0.59%.

The Labor Department's report showed that the consumer price index (CPI) increased by 3.4% year over year in July, matching economists' forecasts.

This data led to an increase in bets that the Federal Reserve will keep interest rates unchanged at its September meeting, with markets pricing in a 55-58% probability of no rate change.

The inflation reading suggested that price pressures continue to moderate, despite ongoing geopolitical tensions and volatile energy markets.