On Wednesday, the S&P 500 rose amid moderate U.S. inflation and gains in technology stocks, particularly artificial intelligence-related companies such as CoreWeave and Super Micro Computer. The broad market index added 0.3%, while the Nasdaq Composite rose 0.5%. The Dow Jones Industrial Average finished slightly below the flat line. July consumer price index data came in as expected: the headline index increased 0.1% for the month, and the year-over-year inflation rate was 3.4%. The core CPI (excluding food and energy) rose 0.2% last month and 2.5% year over year. The annual pace of both headline and core CPI eased slightly from June.
Latest quarterly results and guidance from CoreWeave and Super Micro Computer reassured investors about the resilience of demand for artificial intelligence solutions. CoreWeave shares jumped 18% after the cloud infrastructure leader’s adjusted operating profit for Q2 beat expectations and revenue doubled from a year earlier. Super Micro Computer shares climbed 17% following strong Q1 profit and revenue guidance.
The real estate sector (+1.1%) delivered the day’s best performance, matching information technology as Treasury yields dipped modestly. However, performance across other sectors was more mixed: gains in semiconductor and AI-related stocks contrasted with weakness in several large non-semiconductor companies.
Consumer discretionary (-1.4%) was the worst-performing sector, as Amazon (-1.8%) and Tesla (-1.6%) fell notably. Major apparel companies also faced pressure. Homebuilders and related firms struggled despite lower bond yields. The iShares U.S. Home Construction ETF fell 2.3%.
Communication services (-0.9%) also underperformed, with Meta Platforms (-3.4%) among the weakest components.