Tech Sector Boosts S&P 500 Amid Inflation Concerns and Political Tensions

The S&P 500 index saw gains on Wednesday primarily due to a strong performance in the technology sector, which offset investor disappointment over inflation reports. Political developments, including a combative presidential debate, also influenced market sentiment. Despite inflation pressures, technology stocks led the market gains.

The S&P 500 index saw a resurgence on Wednesday, buoyed by a rally in the technology sector which helped to counterbalance investor anxiety following a discouraging inflation report. Optimism had been dampened by hopes dashed for a 50 basis point rate cut by the Federal Reserve next week.

The technology segment of the S&P 500 reversed its early losses to rise by 2.4%, largely powered by a 6.3% surge in Nvidia's stock. Reports suggested that the U.S. might allow the AI chip manufacturer to export advanced chips to Saudi Arabia, boosting investor confidence.

Market sentiment was further shaped by political dynamics, as U.S. Presidential candidate Kamala Harris put Republican rival Donald Trump on the defensive in a heated debate. Concurrently, the Labor Department's Consumer Price Index (CPI) reported a 0.2% rise last month, influencing traders' expectations for an interest rate cut from the Federal Reserve.

(With inputs from agencies.)