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Business

US Stocks Rise as Inflation Reading Eases Fed Pressure

U.S. stocks traded higher after a subdued inflation reading eased pressure on the Federal Reserve to raise interest rates, clearing the way for an earnings-led tech rally to continue. Futures had pointed upward earlier in the session, with economists expecting consumer prices to slow to 3.4% from June's 3.5%. Strong quarterly results boosted Super Micro and other AI data-center suppliers, helping drive the gains. The cooler price data reduced concerns that the Fed would need to tighten policy further, providing support to equity markets broadly. Investors now turn their attention to upcoming earnings reports and any additional signals on inflation, as the central bank continues to monitor surging costs.

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