S&P 500 closes 0.12% below all-time high as softer CPI data eases Fed rate hike concerns and AI stocks rally.
The S&P 500 rose 0.26% to settle just 0.12% below its August 7 record, driven by easing inflation fears and a rally in semiconductor stocks. Nasdaq and Russell 2000 outperformed, gaining 0.54% and 0.61%, respectively, while the VIX volatility index hit its lowest level since January at 14.55.
Cooling US CPI data reduced expectations for further Federal Reserve tightening, supporting equities. The Philadelphia Semiconductor Index surged 2.49%, extending its year-to-date gain to 75.1%, though it remains 15.3% below its June peak. AI-related stocks led gains, with CoreWeave and Super Micro rising over 19% after upbeat outlooks.
Cloud provider Nebius reported a 454% year-on-year revenue increase to $582m, further boosting sentiment. The equal-weighted S&P 500 also reached a new high, reflecting broad market strength amid the August lull.