Stock Market Rises on Inflation Relief and Tech Gains
The stock market saw gains on August 13 as inflation cooled and positive economic news emerged. The S&P 500 index rose 0.65% to 7,799, clearing the 7,800 mark for the first time in intraday trading. The Nasdaq Composite surged 0.81% to 26,803, while the Dow Jones Industrial Average edged up 0.13% to 53,840.
The decline in wholesale inflation and reduced pressure on the Federal Reserve to raise interest rates contributed to the market's optimism. This shift was reflected in the CME FedWatch tool, which showed a decrease in the probability of a rate hike from 55% last week to under 35%. The tech sector led gains, with Workday soaring 18% after reports of buyout talks with private equity firm Silver Lake.
Other notable movers included Harmonic Inc, which rose 9% on strong quarterly earnings and raised guidance. Amazon.com shares slipped due to an intensifying legal dispute involving AI training. Joby Aviation recovered slightly from its previous decline following a $500 million acquisition and new equity facility announcement.