U.S. stocks ended higher on August 12, with the S&P 500 and Nasdaq advancing as strong earnings and spending plans from artificial intelligence infrastructure companies renewed optimism around the sector. At the same time, July consumer-price data showed limited inflation pressure, strengthening expectations that the Federal Reserve could leave interest rates unchanged at its September meeting.

AI Infrastructure Stocks Drive Market Momentum

CoreWeave was among the strongest performers, surging 19% after the AI cloud company raised its annual capital-spending forecast and reported second-quarter results above Wall Street expectations. The reaction highlights how investors continue to focus on the scale of spending required to build the computing infrastructure supporting artificial intelligence.

Other companies exposed to AI infrastructure also advanced sharply. Data-center operator IREN gained almost 10%, while Applied Digital rose 4.9%. Nebius Group jumped 34% after reporting second-quarter results that exceeded expectations. The broad response suggests that the market reaction extended beyond a single company and into the wider ecosystem supporting AI computing capacity.

Super Micro Computer added to the momentum, surging 19% after forecasting fiscal 2027 revenue above Wall Street expectations. Semiconductor stocks also strengthened, with Nvidia gaining 3% and Micron Technology rising 4.9%. The PHLX Semiconductor Index advanced approximately 2.5%, although it remained about 15% below its June 22 record close.

Inflation Data Eases September Rate Concerns

The market’s technology-led advance was reinforced by relatively benign inflation data. U.S. consumer prices barely increased in July, while gasoline prices declined for a second consecutive month. The data reduced concerns that inflation would force the Federal Reserve toward another rate increase in September.

Market pricing shifted accordingly. Traders were assigning a 62% probability of the Federal Reserve holding rates steady at its September meeting, according to CME’s FedWatch Tool. Before the July inflation report, expectations had been more evenly divided between a rate increase and no change.

The combination of stable inflation and resilient corporate earnings creates a supportive backdrop for equities, particularly growth-oriented companies whose valuations can be sensitive to changes in interest-rate expectations. However, the data does not eliminate the possibility of renewed inflation pressure later in the year.

S&P 500 Extends 2026 Gains

The S&P 500 rose 0.26% to 7,748.50, leaving the benchmark approximately 13% higher for 2026. The Nasdaq gained 0.54% to 26,588.49, while the Dow Jones Industrial Average slipped 0.04% to 53,770.27.

Market participation was relatively broad, with eight of the 11 S&P 500 sector indexes ending higher. Real estate led the sector gains with a 1.08% increase, followed by information technology at 1.06%. The Cboe Volatility Index also declined 0.8 point to 14.45, its lowest level since January, indicating relatively subdued near-term market volatility.

Trading volume remained light, with approximately 15.5 billion shares changing hands compared with a 20-session average of 17.5 billion. That relatively modest activity provides an important qualification to the day’s gains, as stronger conviction could require broader participation and higher trading volumes.

Looking ahead, investors will closely monitor whether AI infrastructure spending continues to translate into sustainable revenue growth and whether strong corporate forecasts can justify elevated expectations across the technology complex. Federal Reserve policy will remain another central variable, particularly as additional inflation and labor-market data become available before September. The interaction between AI capital expenditure, corporate earnings, interest rates and market valuations will help determine whether the latest technology-led advance develops into broader equity-market strength or remains concentrated among a relatively narrow group of AI-linked companies.