Wall Street Rises Near Record          08/12 15:29

   Wall Street finished just shy of a record Wednesday after several AI stocks 
reported better growth for the spring than analysts expected, while a report 
showed inflation across the United States was slightly less bad last month.

   NEW YORK (AP) -- Wall Street finished just shy of a record Wednesday after 
several AI stocks reported better growth for the spring than analysts expected, 
while a report showed inflation across the United States was slightly less bad 
last month.

   The S&P 500 rose 0.3% for its first gain since setting its all-time high on 
Friday. The Dow Jones Industrial Average dipped 21 points, or less than 0.1%, 
and the Nasdaq composite climbed 0.5%.

   Stocks in the artificial-intelligence technology business helped lead the 
way after strong profit reports bolstered hopes they can continue to deliver 
big-enough growth to justify the huge gains their prices have ade.

   Super Micro Computer, which sells servers and other equipment, jumped 19% 
after reporting earnings per share for the latest quarter that were 84% higher 
than analysts expected. It also gave forecasts for upcoming profit and revenue 
that topped analysts' expectations.

   CoreWeave, which offers AI computing power to customers over the cloud, 
leaped 19.3% after reporting better revenue for the latest quarter than 
analysts expected, along with a milder loss. CEO Michael Intrator said demand 
is accelerating from customers as big businesses adopt AI.

   CoreWeave gives its customers access to AI chips from Nvidia, and Nvidia 
climbed 3%. It was the single strongest force lifting the S&P 500.

   It's a return to strength for AI stocks, which have been veering on a 
roller-coaster ride. After surging to records, AI stocks came under pressure on 
worries that they shot too high. Investors wanted to see big spenders on AI 
prove their investments are yielding enough in profits and productivity to make 
them worth it. That in turn could lead to continued demand for chips and other 
AI infrastructure.

   Wall Street also got some support from easing yields in the bond market. 
Treasury yields fell after a report showed that U.S. consumers paid prices for 
gasoline, groceries and other costs of living last month that were 3.4% higher 
than a year earlier.

   That's higher than anyone would like, but it's not as bad as June's 3.5% 
inflation rate.

   The deceleration could give the Federal Reserve more leeway to hold off on 
hikes to interest rates. Higher rates would help keep a lid on inflation, but 
they would do so by making it more expensive for U.S. households and companies 
to borrow and forcing a slowdown in the economy. Higher interest rates also 
would undercut prices for stocks and other investments.

   The Fed's members are notably split about whether they should have already 
begun hiking interest rates. But Wednesday's update on inflation pushed traders 
to pull back on bets the Fed will hike its main interest rate at its next 
meeting in September.

   Traders are betting on a 40% chance of it, down from the coin flip's chance 
seen the day before, according to data from CME Group.

   That helped pull the yield on the 10-year Treasury down to 4.68% from 4.70% 
late Tuesday. It, though, still remains well above its 3.97% level from before 
the war with Iran, which sent oil prices and worries about inflation spiking.

   Oil prices swung between modest gains and losses Wednesday, and the price 
for a barrel of Brent crude added 0.1% to $88.98.

   Higher yields have already pulled long-term mortgage rates to their highest 
levels in a year. That's hurting the housing industry, and losses for 
homebuilders on Wednesday helped keep the market in check.

   D.R. Horton fell 3.3%, and PulteGroup lost 2.5%. Builders FirstSource, which 
sells countertops and other building materials, dropped 3.6%.

   All told, the S&P 500 rose 20.30 points to 7,748.50. The Dow Jones 
Industrial Average dipped 21.58 to 53,770.27, and the Nasdaq composite gained 
143.04 to 26,588.49.

   In stock markets abroad, indexes dipped in Europe following a mixed showing 
in Asia.

   South Korea's Kospi jumped 3.7% for one of the world's bigger gains. It's 
been at the center of the jarring swings for AI stocks because it's dominated 
by two tech giants, Samsung Electronics and SK Hynix.