S&P 500 Rises on Mild Inflation Data, Red-Hot AI Rally: Stock Market Today
U.S. stocks rose after the BLS reported July CPI up 0.1% m/m and 3.4% y/y, matching economists’ expectations. The S&P 500 gained 0.3% to 7,748, Nasdaq rose 0.5% to 26,588, and the Dow fell 0.04% to 53,770. AI earnings lifted Super Micro (SMCI) +19%, CoreWeave (CRWV) +19.3%, and Nebius (NBIS) +34.1% on strong revenue and guidance.
How this was made
The 30-second read
Why it matters
The CPI data reduced expectations for a September hike, while company-specific earnings and guidance drove large, same-day moves in AI infrastructure names.
Market read
Tame CPI plus AI earnings created a risk-on session, with major indexes near records and large repricings in AI infrastructure stocks.
What to watch
CPI is still above the Fed’s 2% target, so any renewed hawkish rate repricing could cap follow-through even with strong AI earnings.
Background
Wednesday’s market open was supported by a tame CPI print and continued AI stock strength tied to earnings.
Ticker impact
Super Micro surged 19% after reporting higher-than-expected fiscal Q4 earnings and strong fiscal 2027 Q1 guidance.
Likely continued volatility and upside bias while traders digest guidance and backlog/order commentary.
The article cites a same-day earnings/guidance disclosure with a large move (19%), indicating a direct, time-sensitive repricing.
CoreWeave jumped 19.3% after saying Q2 revenue more than doubled YoY and it expects similar strength in Q3.
Near-term upside bias, but expect pullbacks due to the article’s noted uncertainty around the magnitude of revenue upside.
The catalyst is clear and same-day, but the piece flags risk/reward as balanced, implying less one-way follow-through.
Nebius Group rallied 34.1% after reporting Q2 revenue surged more than fivefold to $582.3 million.
High volatility with potential continuation if traders extrapolate compute demand and pricing strength.
The article provides a specific revenue figure and a large move (34.1%), but it also mentions short-squeeze dynamics that can fade.
Market effects
Reinforces AI infrastructure and cloud compute demand narrative, supporting broader risk appetite in AI-linked equities.
Primarily US-focused via S&P 500, Nasdaq, and rate-expectation repricing from CPI.
US inflation and Fed-rate expectations can spill into global tech and growth-equity valuations.
Counterpoint
AI winners may be overextended after outsized single-day rallies, especially if guidance expectations outpace subsequent quarters.
Key entities
- companySuper Micro Computer
Reported higher-than-expected fiscal Q4 earnings and strong fiscal 2027 Q1 guidance, sending shares up 19%.
- companyCoreWeave
Reported Q2 revenue more than doubling YoY and expects similar strength in Q3, lifting shares 19.3%.
- companyNebius Group
Reported Q2 revenue more than fivefold to $582.3 million, with shares up 34.1%.
- government_agencyBureau of Labor Statistics
Released CPI data showing 0.1% monthly increase and 3.4% YoY inflation.
- central_bankFederal Reserve
Rate-path expectations shifted as traders priced a higher probability of no hike next month.
