Why US stocks are rising: Nasdaq leads Wall Street higher as AI stocks rally, inflation supports Fed pause
US stock indexes rose on Wednesday, led by the Nasdaq, as upbeat earnings from AI infrastructure companies lifted technology shares. Broadly in-line inflation data also strengthened expectations that the Federal Reserve would leave interest rates unchanged, Reuters reported.
US consumer prices rose slightly in July, weakening the case for a rate increase next month. Traders now see a 55% chance that the Fed will hold rates steady in September, according to the CME FedWatch Tool, up from roughly even odds before the data.
