S&P rises as CoreWeave results fuel AI optimism S&P 500 ends higher as CoreWeave results fuel AI optimism (copy)

The S&P 500 and the Nasdaq ended higher Wednesday, lifted by upbeat quarterly results from CoreWeave and other artificial intelligence infrastructure firms, while mild inflation data reinforced bets that the U.S. Federal Reserve will hold interest rates steady in September.

The S&P 500 climbed 0.26% to end the session at 7,748.50 points. The benchmark is up about 13% so far in 2026. The Nasdaq rose 0.54% to 26,588.49 points for the session, while the Dow Jones Industrial Average edged down 0.04% to 53,770.27 points.

U.S. consumer prices barely increased in July as the cost of gasoline declined for a second straight month, while underlying inflation was benign, further reducing expectations of an interest rate hike from the Fed next month.

"The numbers came in right in line. The market's reaction is slightly positive because the market was fearful it was going to come in worse than it did. You're seeing a market thinking that the Fed is not being pushed toward a rate hike," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

CoreWeave surged 19% after the AI cloud company lifted its annual capital spending forecast and topped second-quarter earnings estimates.

Data center operators also rose, with IREN gaining almost 10% and Applied Digital up 4.9%. Data center company Nebius Group jumped 34%, helped by second-quarter results that beat expectations.

Super Micro Computer surged 19% after the AI server maker forecast fiscal 2027 revenue above Wall Street expectations.

Chipmakers also gained, with Nvidia rising 3% and Micron Technology adding 4.9%. The PHLX Semiconductor Index advanced about 2.5%. It remains down about 15% from its record-high close on June 22.

Eight of the 11 S&P 500 sector indexes rose, led by real estate, up 1.08%, followed by a 1.06% gain in information technology.

Wall Street's fear gauge, the Cboe Volatility Index, dipped 0.8 point to 14.45, its lowest level since January.

Traders now price in a 62% chance of the Fed holding rates in September, according to CME's FedWatch Tool. Before the July inflation data was released, bets were split between a hike and no change.

The U.S.-Iran conflict remained volatile, as a senior Iranian source said there was no progress in talks to revive and define a time frame to implement the interim deal reached in June, while shipping attacks continued.

Cava Group advanced 14.2% after the restaurant chain beat Wall Street expectations for second-quarter sales and core profit.

Lumentum Holdings surged 13.6% after the photonic product maker forecast first-quarter revenue above analysts' expectations and beat fourth-quarter estimates.