S&P 500 ends higher as CoreWeave results fuel AI optimism

The S&P 500 and Nasdaq ended higher on Wednesday, Aug 12, fueled by strong quarterly results from artificial intelligence infrastructure firms. Mild inflation data suggested that the US Federal Reserve may hold interest rates steady in September. US consumer prices barely rose in July, as the cost of petrol declined for the second consecutive month, reducing expectations of an interest rate hike from the Federal Reserve.

CoreWeave surged 19% after raising its annual capital spending forecast and surpassing second-quarter earnings estimates. Data center operators, including Iren and Applied Digital, also gained, with Iren up almost 10% and Applied Digital up 4.9%. Nebius Group jumped 34% after beating second-quarter expectations, while Super Micro Computer rose 19% after forecasting fiscal 2027 revenue above Wall Street expectations.

Chipmakers, including Nvidia and Micron Technology, climbed, with Nvidia up 3% and Micron Technology 4.9%. The PHLX Semiconductor Index advanced about 2.5%, down about 15% from its June 22 record high. The S&P 500 climbed 0.26% to 7,748.50 points, up 13% so far in 2026. The Nasdaq gained 0.54% to 26,588.49 points. Wall Street's fear gauge, the Cboe Volatility Index, fell to its lowest level since January.

Eight of the 11 S&P 500 sector indexes rose, led by real estate and information technology. Traders now price a 62% chance of the Fed holding rates at its September meeting.