U.S. Stocks Extend Wednesday Gains
(MENAFN) US stock markets extended gains on Wednesday, fueled by optimism over lower-than-expected inflation data that sparked hopes for an earlier interest rate cut by the Federal Reserve.
The Dow Jones Industrial Average climbed 1.04%, adding 463.66 points to finish at 44,922.27.
The Nasdaq Composite rose 0.14%, or 31.24 points, closing at 21,713.14, marking a second consecutive record high.
The S&P 500 increased by 0.32%, or 20.82 points, to settle at 6,466.58, also reaching a fresh record high.
Among the notable winners in the tech sector, AMD surged 5.37%, while Apple gained 1.6%. Paramount Skydance saw a dramatic 36.7% spike in its shares.
The rally followed a report showing that annual inflation in the US remained moderate at 2.7% in July, with a monthly rate of just 0.2%. This tempered inflation reading fueled optimism about the economy and expectations that the Fed may lower rates sooner than anticipated.
Investors are now closely awaiting Thursday’s US producer inflation data for further signals on price pressures.
Federal Reserve officials’ remarks are also being scrutinized. Chicago Fed President Austan Goolsbee commented on the potential long-term effects of the Trump administration’s tariffs, noting that their impact on inflation could affect the Fed’s decision-making on interest rates.
Raphael Bostic, President of the Atlanta Fed, indicated that a single rate cut this year might be warranted, provided the labor market remains strong.
Meanwhile, President Donald Trump is reportedly weighing 11 potential candidates to succeed Jerome Powell as Fed Chairman when Powell's term ends in May, according to media. Three candidates — David Zervos, Chief Market Strategist at Jefferies; former Fed Governor Larry Lindsey; and Rick Rieder, Chief Investment Officer for Global Fixed Income at BlackRock — have emerged as new contenders. They join eight other names under consideration, including Fed officials Chris Waller, Philip Jefferson, and Michelle Bowman, all confirmed by CNBC as potential candidates.
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