On Wednesday, American stock indices showed mixed results, with the S&P 500 and Nasdaq experiencing gains while the Dow Jones finished the day with a minor decline. The S&P 500 rose by 20.3 points, or 0.26%, closing at 4,748.5 points, and the Nasdaq Composite increased by 143.04 points, or 0.54%, finishing at 26,588.49 points. In contrast, the Dow Jones Industrial Average fell by 21.58 points, or 0.04%, to close at 53,770.27 points.
The rise in the S&P 500 and Nasdaq was fueled by strong quarterly earnings reports from companies in the artificial intelligence sector. Notably, shares of Super Micro Computer Inc. surged by 19% after the company's revenue nearly doubled in the fourth fiscal quarter, exceeding analysts' expectations. CoreWeave also saw its stock jump by 19.3% following record revenue growth in the second quarter, surpassing expert estimates. Other companies in the AI space, such as IREN Ltd and Applied Digital, also experienced significant stock price increases.
In addition, the Netherlands-based Nebius Group, formerly known as Yandex NV, saw its shares rise by over 34% after reporting a 5.5-fold increase in revenue in the second quarter, driven by rapid growth in AI cloud services. The positive earnings reports extended to the restaurant chain Cava Group and optical products manufacturer Lumentum Holdings, which saw their stocks rise by 14.2% and 13.6%, respectively.
Despite the positive trends for many tech companies, some major players faced declines. Shares of International Business Machines decreased by 1%, and Microsoft Corp. fell by 2.3%. Other tech giants, including Apple Inc., Alphabet Inc., and Amazon.com, also saw their stock values drop.
Investors are closely monitoring inflation data, as consumer prices in the U.S. rose by 3.4% year-over-year in July, aligning with analysts' forecasts. This inflation rate marked a slight slowdown from June's 3.5%. The data is particularly significant as rising energy prices linked to Middle Eastern conflicts have increased the likelihood of the Federal Reserve raising interest rates.
Currently, traders estimate a 62% chance that the Federal Reserve will maintain its base rate at the upcoming September meeting, a shift from earlier expectations that were nearly evenly split between a potential rate hike and a hold.
The varied performance of the indices highlights the ongoing volatility in the market, particularly in response to earnings reports and inflation data. This divergence may present both opportunities and challenges for investors and competitors in the evolving financial landscape.
Informational material. 18+.
