The S&P 500 cleared 7,800 in intraday trading for the first time as softer wholesale inflation data eased pressure on the Federal Reserve to raise rates. Workday jumped on buyout talk, while Amazon slipped on a legal dispute tied to AI training.
The S&P 500 gained 0.65% to close at 7,798.99 after touching 7,800 during the session for the first time. The Nasdaq Composite rose 0.81% to 26,803, and the Dow Jones Industrial Average added 0.13% to close at 53,840. Technology and industrial stocks led the gains, while consumer cyclical and communication services names finished lower.
Cooling inflation cuts rate-hike odds
Wholesale inflation data came in softer than expected, further reducing the case for a Federal Reserve rate hike. As a result, the probability of a hike fell from 55% last week to under 35% today, according to the CME FedWatch tool. Gold, however, moved the other way: prices fell 1.29% to $4,349.85 at the close, and the 10-year Treasury yield fell 0.04% to 4.65%.
Workday soars on buyout talk
Workday surged 18% on reports of buyout talks with private equity firm Silver Lake. Harmonic Inc climbed 9% after a quarterly earnings beat and raised guidance, while Cerebras Systems fell on disappointing earnings. Amazon shares slipped amid an intensifying legal dispute involving AI training, and Joby Aviation recovered slightly after it fell the previous day on news of a $500 million acquisition and a new equity facility.
Wall Street divided on the AI build-out
As artificial intelligence spending keeps climbing, Wall Street is split on what stage the build-out has reached. Some argue it remains early, while others say the cycle has entered its middle stages. That divide matters for investors trying to gauge which mega-cap technology firms will turn their heavy capital spending into shareholder returns.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
