The S&P 500 closed higher! Lower-than-expected US inflation boosted AI and tech stocks, driving the Nasdaq to a strong performance.
U.S. stock markets closed higher on Wednesday (August 12, 2569) after U.S. consumer inflation figures for July came in as expected, easing pressure on the Federal Reserve's interest rate direction. Technology and AI stocks surged, while investors continued to closely monitor oil prices and the situation in the Middle East.
U.S. stock markets closed higher, with AI and tech stocks boosting the Nasdaq.
US stock markets closed higher on Wednesday. The S&P 500 and Nasdaq indices were boosted by gains in technology and artificial intelligence stocks after US consumer inflation data for July came in close to market expectations.
The CPI index for July rose 0.1% month-on-month and 3.4% year-on-year. Core CPI, excluding food and energy, increased 0.2% in July and 2.5% year-on-year. This led investors to lower expectations for a Fed interest rate hike in September.
AI-related stocks surged, with CoreWeave and Super Micro Computer jumping around 19% after reporting strong earnings and business outlook. Dell Technologies rose nearly 10% and Micron Technology gained almost 5%.
- Dow Jones Industrial Average Closed at 53,770.27 points, down 21.58 points (-0.04%)
- S&P 500 Index Closed at 7,748.50 points, up 20.30 points (+0.26%)
- Nasdaq Composite Index Closed at 26,588.488 points, up 143.042 points (+0.54%)
European stock markets closed lower as investors watched inflation and the situation in the Middle East.
European stock markets closed lower on Wednesday. After investors assessed US inflation data and remained concerned about energy risks from conflicts in the Middle East, the market awaited further US economic data that could influence the Federal Reserve's monetary policy direction.
The investment climate in Europe remains pressured by persistently high oil prices following attacks on ships in the Red Sea and the Gulf of Oman, raising concerns about the safety of maritime shipping routes and global energy supply.
- STOXX 600 Index Closed at 659.48 points, down 1.03 points (-0.16%)
- DAX German stock market index Closed at 26,331.07 points, down 60.35 points (-0.23%)
- CAC 40 Index of the French stock market Closed at 8,674.94 points, down 40.00 points (-0.46%)
The UK stock market closed lower as investors watched for energy risks.
The London stock market closed lower on Wednesday. Amid pressure from geopolitical uncertainty and energy prices, investors are also assessing the global economic outlook and the direction of interest rates from major central banks.
Concerns about attacks on ships along key shipping lanes in the Middle East are also a factor of concern for the market, as they could impact energy prices and business costs in the coming period.
- FTSE 100 Index UK Stock Market Closed at 10,833.15 points, down 11.04 points (-0.10%)
Oil prices remained stable after the attack on the ship raised supply concerns.
World crude oil prices remained stable on Wednesday. Following attacks on ships in the Red Sea and the Gulf of Oman, investors are once again concerned about the risks to energy shipping routes, even as markets continue to monitor progress on negotiations to reopen the Strait of Hormuz.
The attacks on cargo ships in the Bab el-Mandeb Strait, which reportedly left six dead, as well as the US military's missile strike on a container ship in the Gulf of Oman, further highlight the risks to maritime transport from conflicts in the Middle East.
- WTI crude oil price (September delivery) Closed at $83.27/barrel, up $0.07 (+0.08%)
- Brent crude oil price (October delivery) Closed at $88.98/barrel, up $0.07 (+0.08%)
Gold prices surged to their highest level in over two months, boosted by strong US inflation.
Global gold prices surged on Wednesday, reaching their highest level in over two months, after US inflation data for July came in as expected. This fueled investor speculation that the Federal Reserve might not raise interest rates at its September meeting, while a weaker dollar also boosted buying of gold.
Investors are also watching the U.S. Producer Price Index (PPI) data to be released on Thursday, which could be a key factor in assessing the Federal Reserve's interest rate direction in the coming period.
- Spot Gold Price Gold closed at $4,409.35 per ounce, up 1.0%, while intraday prices surged above the 100-day moving average at around $4,387 per ounce and reached their highest level since June 5.
- Gold price on Comex market (December delivery) Closed at $4,466.80/ounce, up 0.6%.
The dollar strengthened slightly after US inflation figures came in as expected.
The US dollar strengthened slightly against major currencies. Following the release of US inflation figures for July, which were in line with expectations, investors have lowered their expectations for a Federal Reserve interest rate hike in September.
The Dollar Index, which measures the dollar against a basket of six major currencies, rose 0.17% to 99.98, as markets awaited US PPI and retail sales data to assess economic trends and the Federal Reserve's monetary policy direction.
- Euro/Dollar It closed at $1.1524, down 0.14%.
- Dollar/Yen Closed at 159.45 yen, up 0.10%.
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