US Stocks Rebound on Cooler Inflation Data, AI Stocks Surge

The US stock market experienced a recovery on Wednesday after consumer inflation data revealed that prices cooled in July, easing concerns about potential interest rate hikes by the Federal Reserve.

The Consumer Price Index (CPI) rose 3.4% year-on-year in July, down from June's 3.5% increase.

This development offered some relief to investors who had been worried that persistent inflation could prompt the Fed to raise interest rates in September, potentially creating a headwind for equities.

CoreWeave shares surged 22% after reporting quarterly revenue of $2.6 billion, more than double the figure from a year earlier.

AI and semiconductor stocks also advanced, with Nvidia up 2%, Micron Technology climbing 4.4%, and Broadcom adding 1.4%.