US sharemarkets mostly advanced on Wednesday as a softer inflation backdrop reduced expectations for a September interest rate rise and strong results from AI-related companies supported technology stocks.
The S&P 500 rose 0.26% to 7,748.50, while the Nasdaq Composite gained 0.54% to 26,588.49. The Dow Jones Industrial Average bucked the trend, slipping 21.58 points, or 0.04%, to 53,770.27.
Technology stocks led the gains after results from CoreWeave and Super Micro Computer reinforced confidence in demand for AI infrastructure. CoreWeave jumped 19% after second-quarter revenue doubled from a year earlier and its adjusted operating margin exceeded expectations. Super Micro Computer also gained 19% after issuing a strong first-quarter earnings and revenue outlook.
The gains extended across the AI sector, with Dell Technologies rising almost 10%, Micron Technology gaining nearly 5% and Cisco Systems adding close to 3%. Nvidia rose 3%, while Nebius surged 34%.
The latest earnings add to signs that spending on AI infrastructure remains resilient, helping support technology stocks following recent concerns about the scale of investment and potential returns.
Australian Market Outlook
Australian shares are set to open lower despite the positive lead from US technology stocks.
S&P/ASX 200 futures are down 24 points, or 0.3%, to 9,128.
The August reporting season remains the main focus locally, with ASX, Insurance Australia Group, Orora, Origin Energy, Transurban, Telstra and Treasury Wine Estates scheduled to report today.
Offshore, investors will continue to assess the outlook for US interest rates following the July CPI report, with attention now turning to producer inflation data for further indications of underlying price pressures.
