New York stocks opened higher as U.S. inflation data met market expectations and earnings from artificial intelligence (AI)–related corporations continued to come in strong.
According to the New York Stock Exchange (NYSE) on the 12th (local time), the Dow Jones Industrial Average opened at 53,797.47, up 5.6 points (0.01%) from the previous session. The Standard & Poor's (S&P) 500 rose 37.3 points (0.48%) to 7,765.46, and the tech-heavy Nasdaq composite opened at 26,680.47, up 235.0 points (0.89%).
The U.S. consumer price index (CPI) for July, released before the opening, rose 0.1% from the previous month and 3.4% from a year earlier. Core CPI, which excludes the more volatile food and energy categories, rose 0.2% from the previous month and 2.5% from a year earlier. Both headline and core CPI matched market forecasts.
With prices rising less strongly than feared, market concerns eased somewhat that the Federal Reserve (Fed) could raise rates in September. Following the CPI release, the fed funds futures market priced about a 55% chance that the Fed will keep the benchmark rate unchanged at 3.50%–3.75% in September.
Strong results from AI-related corporations also supported the market's gains. AI cloud firm CoreWeave saw its shares surge after second-quarter results topped expectations and it raised this year's capital expenditure outlook. AI server company Super Micro Computer also showed strength after issuing a fiscal 2027 revenue outlook that beat market estimates.
Still, the Middle East situation remains a factor that could cap gains. With cease-fire and end-of-war talks between the United States and Iran making little progress and international oil prices continuing to rise, concerns persist that energy-driven inflationary pressures could build again.