US Stocks Rise as Inflation Data Eases Rate Hike Fears
The US stock market ended on an upbeat note on Wednesday as inflation data came in line with forecasts, easing concerns about an early rate hike by the Federal Reserve. The S&P 500 closed 0.3% higher, while the Nasdaq 100 added 0.5%, and the Dow Jones Industrial Average marginally eased 0.04%. The Russell 2000, which tracks stocks with small market capitalizations, gained 0.6%.
The VanEck Semiconductor ETF (SMH) jumped 2% due to strength in Nvidia (NVDA), Micron Tech (MU), and ASML Holdings (ASML). The Vanguard Information Technology ETF (VGT) also rose by 1%, led by a 10% surge in SpaceX (SPCX) stock.
July's consumer price index matched forecasts, with monthly headline inflation rising 0.1% to bring the year-over-year rate to 3.4%. Core CPI, which excludes volatile energy and food components, increased 0.2% for the month and 2.5% compared to the prior year.
Investors are now looking ahead to the next Federal Reserve rate announcement meeting in September, while prices remain elevated.