Nasdaq Rallies on Tech Strength as CPI Data Meets Expectations

U.S. equities advanced as risk appetite returned, driven by a combination of Nvidia's bullish AI chip developments and benign inflation figures. The Nasdaq Composite outperformed with a 0.65% gain, while the S&P 500 edged up 0.21%. Only the Dow bucked the trend, dipping 0.3% as cyclical stocks lagged.

Nvidia shares surged 5% in premarket trading after announcing progress in resuming AI chip sales to China. The semiconductor giant's breakthrough ignited a broader tech rally, with market participants interpreting the development as evidence of resilient demand for advanced computing infrastructure.

June's CPI reading of 2.7% year-over-year came in slightly above May's 2.4% but aligned with market expectations. Core inflation metrics showed modest acceleration, with Mohamed El-Erian noting the data 'largely aligned with, or came in slightly softer than, consensus forecasts.' The reaction across asset classes suggests investors view the figures as consistent with the Federal Reserve's inflation trajectory.