Nasdaq Surges as Inflation Data Misses Forecasts
Investors welcomed Wednesday's inflation data, which showed Core PCE rose just 0.2% in August for an annual rate of 3%, below the forecasted 3.3%. The Nasdaq Composite rose 1.1%, while the S&P 500 added 0.6%. However, the Dow Jones Industrial Average finished flat.
The tech sector drove the rally, with Alphabet rising 3.1% after signing a White House AI accord and Apple gaining 2.4% on reports of an Oct. 13 event with a new smart home hub. The six stocks behind the Nasdaq's gain accounted for 1.11 percentage points of its 1.14% rise, while the rest of the market was essentially stagnant.
The Dow's performance reflected the split between heavyweights Caterpillar and Goldman Sachs, which fell roughly 1%, canceling out gains from other stocks. The average stock went nowhere, with equal-weight S&P 500 funds slipping slightly while cap-weighted versions rose 0.6%.