Stocks Rise on Cooler Inflation Data, Tech Sector Leads Rally
Stock market indexes rose on Wednesday as inflation data came in lower than expected. The Nasdaq Composite climbed 1.1% and the S&P 500 added 0.6%, while the Dow Jones Industrial Average remained flat.
The Consumer Price Index for Personal Consumption Expenditures (PCE) rose just 0.2% in August, below a forecasted 0.3%. The annual rate of inflation was 3.0%, also lower than expected.
The tech sector led the rally, with Alphabet and Apple contributing significantly to the gains. Alphabet's share price jumped about 3.1% after signing a White House AI accord, while Apple rose 2.4% on reports of an October 13 event featuring a new smart home hub.
However, the Dow was affected by the decline of heavyweights Caterpillar and Goldman Sachs, which canceled out gains from other stocks.