AI Optimism Returns as Inflation Cools; Nasdaq Rises 0.5% as SK hynix ADR Jumps 9%

[Financial News] Major indexes on the New York stock market ended mixed and little changed on the 12th, as the pace of increase in the July Consumer Price Index (CPI) slowed.
AI-related stocks gained ground as optimism about the AI boom revived on strong results from companies tied to AI infrastructure.
The Dow Jones Industrial Average (DJIA) closed at 53,770.27, down 21.58 points, or 0.04%, from the previous session.
The S&P 500 Index rose 20.30 points, or 0.26%, to 7,748.50, while the NASDAQ Composite Index, which is heavily weighted toward technology stocks, gained 143.04 points, or 0.54%, to finish at 26,588.49.
The U.S. Bureau of Labor Statistics said the Consumer Price Index in the United States rose 3.4% in July from a year earlier. The increase slowed from 3.5% in June and matched the consensus forecast compiled by Dow Jones.
Core CPI, which excludes energy and food, also rose 2.5% from a year earlier, down from 2.6% in June.
The data gave the Federal Reserve some breathing room in its fight against inflation, even as expectations grew that the central bank might soon need to raise interest rates.
Still, persistent high oil prices kept alive expectations that the Fed would eventually have to move toward a rate hike.
Brent Crude Oil for October delivery settled at $88.98 a barrel, up 0.1% from the previous session, holding near the $90 level.
Stalled talks over the resumption of traffic through the Strait of Hormuz helped prevent oil prices from falling, despite expectations of weaker demand.
The market slightly increased expectations today that the Fed will hold rates steady in September.
According to the CME FedWatch Tool, the futures market priced in a 60% chance that the Fed will keep rates unchanged at the September meeting of the Federal Open Market Committee (FOMC). As recently as the previous day, the market had assigned roughly even odds to a rate hold or a 0.25 percentage point hike.
Ellen Zentner, chief strategist at Morgan Stanley Wealth Management, told CNBC, "Inflation data that came in as expected will preserve the 'no need for a rate hike' narrative that emerged after last week's disappointing employment report." She added, "There is still room for that narrative to change, as one more inflation report remains before the September FOMC meeting."
CoreWeave, an AI cloud company, and Super Micro Computer, a server maker, each jumped 19.28% and 19.02%, respectively, after posting surprise earnings the previous day, reigniting optimism around AI infrastructure.
Micron Technology, Inc. rose 4.92% on the day, while SK hynix American Depositary Receipt (ADR) shares surged 9.01% to close higher.


[email protected] Reporter Lee Seok-woo Reporter