Semiconductor stocks drove a rally in U.S. equities after softer wholesale inflation data eased rate-cut concerns.
U.S. stocks closed higher Wednesday, led by the Nasdaq Composite, which rose 0.6% on a rebound in semiconductor and technology shares. The gains followed cooler-than-expected wholesale inflation data, reducing pressure on the Federal Reserve to maintain aggressive monetary policy.
The Nasdaq outperformed the S&P 500 and Dow Jones Industrial Average, which also posted modest gains. Semiconductor stocks, a key driver of tech sector performance, recovered from recent losses amid broader market volatility.
Investors parsed the latest inflation figures, which suggested easing price pressures, potentially supporting a more accommodative Fed stance later this year.