American indices rose after strong tech-sector reports

The American stock market closed trading on August 12 mostly higher amid strong corporate reports from artificial intelligence-related companies and easing investor concerns about inflation.

The S&P 500 added 0.3% and closed at 7,748.50 points. The tech-heavy Nasdaq Composite rose 0.5% to 26,588.49 points. Meanwhile, the industrial Dow Jones fell less than 0.1% to 53,770.27 points.

Technology shares provided the main support to the market. Investors renewed their interest in equipment manufacturers and infrastructure suppliers for artificial intelligence after quarterly results were published.

AI company stocks surged sharply

One of the trading leaders was Super Micro Computer. The server equipment maker's stock rose significantly after its report and strong sales forecasts. The company is benefiting from increased spending by major technology groups on servers and computational infrastructure for AI.

Cloud provider CoreWeave's stock also rose about 19%. The company reported high demand for computing power for artificial intelligence and strong revenue dynamics.

Nvidia shares added about 3%. The company remains one of the key suppliers of graphics processors used for training and operating modern artificial intelligence models.

Semiconductor and networking equipment makers gave an additional boost to the technology sector. Thus, after several weaker sessions, investors again began increasing positions in companies related to the development of AI infrastructure.

Inflation concerns eased slightly

Market sentiment was also supported by fresh US inflation data. Annual consumer price growth in July slowed to 3.4% from 3.5% a month earlier.

This dynamic reduced concerns that the Federal Reserve would have to raise interest rates further to combat price growth. Against this backdrop, US government bond yields fell, which traditionally supports stocks, especially technology companies with high future growth expectations.

Despite the rise in the S&P 500 and Nasdaq, market movement remained mixed. Stocks of some companies in the consumer, energy, and healthcare sectors came under pressure, while the greatest demand was concentrated around the technology sector and artificial intelligence-related companies.

The next important guide for investors will be new corporate reports and US producer price statistics. These data may influence expectations regarding the Federal Reserve's further policy and borrowing costs.

Based on: Het Financieele Dagblad, The Wall Street Journal