Wall Street rises near a record as AI stocks climb and worries about
inflation ease a bit
[August 13, 2026] By
STAN CHOE
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
made.
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.
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Trader Fred Demarco, right, and Specialist Michael Pistillo, left,
work on the floor of the New York Stock Exchange, Friday, Aug. 7,
2026, in New York. (AP Photo/Yuki Iwamura)
 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.
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AP Business Writers Michelle Chapman and Elaine Kurtenbach
contributed to this report.
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