Wall Street Mixed as July CPI Matches Expectations

New York stocks closed mixed.

The U.S. stock market wrapped up the session with mixed results.

While the Nasdaq gained over 0.5% and the S&P 500 inched up, the Dow Jones Industrial Average closed slightly lower.

By sector, technology and materials both rose by 1%, whereas consumer discretionary fell by over 1%.

The July Consumer Price Index (CPI), which was the market's primary focus, came in exactly in line with expectations.

July consumer prices rose 3.4% from the same month last year, showing a slower increase compared to the previous month's 3.5%.

Core CPI, which excludes food and energy, also showed stable trends at 2.5%.

Relieved by the somewhat cooling inflation pace, the market is weighting the possibility that the Federal Reserve will freeze benchmark interest rates next month.

However, because inflation remains above the target level and the 30-year Treasury yield stays in the low 5% range, long-term bond yield pressures remain a source of anxiety for the bond market.

Adding to the relief over slowing inflation, stellar earnings from AI-related companies also provided upward momentum for the market.

CoreWeave skyrocketed more than 19% on news that its adjusted operating margin significantly beat expectations and its revenue doubled, while AI infrastructure and server-related stocks such as Super Micro Computer and Nebius also experienced steep surges.

Major semiconductor stocks like Micron Technology and Dell also showed a joint rally, pushing the Philadelphia Semiconductor Index up by more than 2%.

Tomorrow, the July Producer Price Index (PPI) and Applied Materials' earnings report are scheduled to be released.

※