Tech Surge: AI Earnings Propel Nasdaq Closer to Record High

Wall Street's indexes rose as strong AI-related earnings boosted tech stocks, especially the Nasdaq. Inflation data supported beliefs of steady interest rates by the Fed. Semiconductor firms led gains, while geopolitical tensions in the Middle East continued to affect market dynamics.

Wall Street saw a surge in its main indexes on Wednesday, with the Nasdaq outperforming its peers, thanks to promising earnings reports from AI infrastructure firms. This development bolstered technology stocks, while recent in-line inflation data reinforced the expectation that the Federal Reserve will maintain steady interest rates.

Data indicated a modest rise in U.S. consumer prices in July, weakening the case for an interest rate hike. Investors now estimate a 55% probability that the U.S. Federal Reserve will hold rates at its September meeting, according to CME's FedWatch Tool. Before the data release, there was division among traders on the matter.

Chipmakers saw significant growth, leading the upward trend. Nvidia rose by 2%, Micron Technology by 4.4%, and Broadcom by 1.4%. The semiconductor index experienced its largest one-day jump in over a week. Meanwhile, geopolitical tensions in the Middle East continued to create volatility, with high energy prices influencing rate-hike predictions.