Wall Street closes mixed as U.S. inflation moderates in July

Wall Street concluded Wednesday's trading session on a mixed note, with the Dow Jones Industrial Average experiencing a slight decline while the S&P 500 and Nasdaq recorded gains. The market sentiment was influenced by a report showing a moderation in U.S. inflation for July.

The Consumer Price Index (CPI) for July fell by one-tenth of a point to 3.4%, primarily driven by a decrease in energy prices. This figure met market expectations for a cooling of fuel costs following a peak attributed to the conflict in Iran. Core inflation, which excludes volatile energy and food components, also eased, dropping to 2.5%, a tenth of a point lower than in June, according to the Bureau of Labor Statistics.

Despite the easing, the year-over-year inflation rate remains above the Federal Reserve's (Fed) 2% target. However, it is significantly lower than the 4.2% surge recorded in May, which was the highest level since April 2023. Meanwhile, the price of West Texas Intermediate (WTI) crude oil saw a slight rebound, closing at $83.27 per barrel, following recent attacks in the Middle East by the United States and Houthi rebels.

In corporate news, the technology sector showed strength, advancing 1.06%. This occurred despite ongoing volatility in artificial intelligence (AI) stocks, particularly semiconductors. Dell's stock surged 9.9% after Goldman Sachs upgraded its investment rating, and Micron rose 5.1% on positive future revenue projections related to AI. Companies like CoreWeave and Super Micro Computer also saw significant gains, jumping 19% each after exceeding analyst expectations with their quarterly results.