Nasdaq, S&P 500 Edge Up Amid Interest Rate Speculation

The Nasdaq and S&P 500 saw modest gains in a volatile trading session, bolstered by cooling inflation data that spurred optimism for an interest-rate cut by the Federal Reserve. Key megacap and chip stocks contributed to the rise, while energy lagged. Marvell surged on strong forecasts, and Intel rose on merger speculation.

The Nasdaq and S&P 500 posted slight gains in turbulent trading on Friday, fueled by hints of moderating price pressures that increased bets on a Federal Reserve interest-rate cut in September.

The Personal Consumption Expenditure index, the Fed's preferred measure of inflation, rose 2.5% annually in July, compared to an estimated 2.6%, and 0.2% monthly as predicted. The report reinforced the likelihood of a rate-cut cycle, with odds of a 25-basis-point reduction at 67.5% according to CME Group's FedWatch Tool.

Among significant movers, Amazon and Microsoft rose 1.8% and 0.4%, respectively, while chip stocks like Broadcom and AMD also gained. Energy stocks led declines with a 0.6% drop, following lower oil prices. Intel surged 9.2% on merger speculation, and Marvell jumped 7.9% after strong Q3 forecasts. Trading volume lightened ahead of the Labor Day holiday.