S&P 500, Nasdaq drift to fresh records, extending rally
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Traders working on the floor of the New York Stock Exchange, in New York City, on Aug 13.
PHOTO: REUTERS
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- US stocks rose, with the S&P 500 and Nasdaq reaching record highs amid expectations of Federal Reserve interest rate cuts.
- July's consumer price index showed stable inflation at 2.7%, reassuring markets about the impact of President Trump's tariffs.
- CoreWeave slumped despite revenue growth due to high interest costs and profitability pressures from AI-driven expansion.
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NEW YORK - Wall Street stocks pushed higher Aug 13, lifting the S&P 500 and Nasdaq to fresh records as markets extended a rally following data showing US inflation remains stable.
Stocks are in “full easing expectations mode,” said CFRA Research’s Sam Stovall, who expects two Federal Reserve interest rate cuts later this year.
The Dow Jones Industrial Average led major indices, winning 1 per cent to 44,922.27.
The broad-based S&P 500 climbed 0.3 per cent to 6,466.58, while the tech-rich Nasdaq Composite Index added 0.1 per cent at 20,713.14.
Stocks spent most of the day in positive territory, drifting higher after the Aug 12 consumer price index report showed inflation held in July at 2.7 per cent year-over-year.
The report reassured markets that President Donald Trump’s aggressive campaign of tariffs has not significantly boosted consumer prices.
Mr Stovall expects Aug 14 wholesale inflation data to show increases, but “we think investors will overlook” the shift, he said in a note.
Among individual companies, artificial intelligence infrastructure company CoreWeave slumped more than 20 per cent despite reporting a more than tripling of quarterly revenue to US$1.2 billion (S$1.5 billion) and projecting higher than expected revenue growth.
Briefing.com cited high interest costs due to CoreWeave’s hefty debt load and said the company faces likely profitability pressures as it undertakes “aggressive capacity expansion to meet surging AI-driven demand.”
Brinker International rose 1.6 per cent as it reported profit and revenue growth behind higher sales at its Chili’s restaurant chain. AFP
