US Stocks Mixed, Treasury Yields Fall as July Inflation Cools to 3.4%

U.S. stocks finished mixed and Treasury yields fell on Wednesday, after a consumer price index report showed inflation cooling to 3.4% year-over-year in July, while artificial intelligence sector earnings rallied Wall Street closer to record highs.

Consumer Prices Cool to 3.4% as Inflation Data Clears Path for Federal Reserve

Fresh economic data released on Wednesday brought welcome relief to fixed-income markets, as Treasury yields moved lower following a slight moderation in U.S. inflation through the month of July. Consumer prices climbed 3.4% compared with the same period a year earlier, marking an improvement from the 3.5% annual rate registered in June, according to the consumer price index report.

On a monthly basis, consumer prices ticked up 0.1%, matching economists’ forecasts precisely. The moderation in everyday expenses—spanning groceries, gasoline, and other recurring household costs—helped soothe anxieties that price growth might prove stubborn.

Treasury Yields Slide and Traders Scale Back September Rate Hike Odds

The softer inflation figures triggered an immediate reaction across the bond market, pulling benchmark yields downward. The 10-year U.S. Treasury yield settled at 4.65%, easing back from Tuesday’s close of 4.70%. Even with the descent, yields remain elevated compared to the 3.97% level recorded prior to the outbreak of the war with Iran, a conflict that drove crude oil prices higher and stoked initial inflation fears.

Ahead of next month’s central bank gathering, financial markets recalibrated their outlook for monetary policy. CME Group data showed investors pricing in a 38% probability of a September rate hike, down sharply from roughly an even split a day earlier.

Artificial Intelligence Shares Fuel Wall Street’s Advance Toward Record Highs

Equities found robust support from the technology sector, where stronger-than-expected quarterly earnings from artificial intelligence infrastructure providers renewed confidence in the market’s high-valuation growth engine. The S&P 500 advanced 0.3%, setting the benchmark on a trajectory toward its first positive close since hitting an all-time high on Friday.

The Nasdaq Composite outperformed major peers, rising 0.5% in the session’s broader trading while separate tracking pegged the Nasdaq gain at 0.7% by mid-morning. The Dow Jones Industrial Average finished essentially flat, slipping less than 0.1% according to WSJ figures, while gaining 57 points or 0.1% early in the session per Times of India tracking.

Market Index	Session Performance
Nasdaq Composite	Gained 0.5% to 0.7%
S&P 500	Advanced 0.3%
Dow Jones Industrial Average	Slipped slightly / Rose 57 points early

CoreWeave and Super Micro Computer Post Blockbuster Quarterly Results

Underpinning the tech rally were blowout financial reports from foundational AI players. Super Micro Computer shares surged 14.2% after reporting quarterly earnings per share that exceeded analysts’ consensus estimates by 84%. The server manufacturer also issued forward guidance for profit and revenue that outpaced Wall Street expectations.

Cloud-based artificial intelligence infrastructure provider CoreWeave leaped 18.6% after posting quarterly revenue that topped projections alongside a narrower-than-expected net loss. Chief Executive Officer Michael Intrator noted that enterprise demand is accelerating as major corporations aggressively adopt AI infrastructure. Nvidia, whose specialized microchips power CoreWeave’s data centers, climbed 3.1% to stand as a primary catalyst for the S&P 500’s upward momentum.

Crude Oil Softens as International Equity Markets Deliver Mixed Returns

Commodity markets saw subdued movement as energy traders weighed supply dynamics against macroeconomic data. Brent crude traded in a narrow band below the $90 threshold, briefly dipping before settling down 0.4% at $88.55 a barrel during Wednesday’s exchanges.

Global equities displayed a fragmented picture outside the United States. South Korea’s Kospi index surged 3.7% in a standout regional performance, driven by heavy domestic exposure to memory and semiconductor giants Samsung Electronics and SK Hynix amid ongoing sector volatility.