S&P 500 closes up on tech boost; inflation data dents hopes for big Fed rate cut

by Sinéad Carew and Shashwat Chauhan, Reuters

The S&P 500 index closed higher on Wednesday with a boost from the technology sector offsetting investor disappointment at the early morning inflation report, which crushed hopes the Federal Reserve would cut interest rates by 50 basis points next week.

The S&P 500 technology index (.SPLRCT), opens new tab reversed course and rallied after opening lower with a big boost from AI chipmaker Nvidia (NVDA.O), opens new tab, up 6.3%. Semafor reported that the U.S. government is considering letting Nvidia export advanced chips to Saudi Arabia.

Political developments also drove market sentiment the day after Democrat candidate Kamala Harris put her Republican rival Donald Trump on the defensive in a combative U.S. presidential debate.

Earlier, the Labor Department reported the consumer price index (CPI) rose 0.2% last month, in line with July. Core CPI, excluding volatile food and energy components, rose 0.3% on a monthly basis, exceeding economist expectations for a 0.2% rise.

 

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