Tech Surge and Political Sparring Boost S&P 500 Amid Mixed Inflation Report

The S&P 500 index saw a rise on Wednesday, driven by gains in the technology sector, particularly AI chipmaker Nvidia. This positive movement offset investor concerns over an inflation report that dimmed hopes for a significant Fed rate cut. Political developments from the U.S. presidential debate also influenced market sentiment.

The S&P 500 index closed higher on Wednesday, buoyed by a robust performance from the technology sector. This uplift counterbalanced the morning's disappointing inflation report, which dashed investor hopes for a 50 basis point cut in interest rates by the Federal Reserve next week.

Nvidia, a leading AI chipmaker, spurred the technology index to rally after a weak opening, climbing 6.3%. Reports suggested that the U.S. government may allow Nvidia to export advanced chips to Saudi Arabia, adding further momentum.

Market sentiment was also shaped by the latest U.S. presidential debate, where Democrat Kamala Harris put Republican Donald Trump on the defensive. As investors digested the inflation data, traders adjusted their expectations, now predicting an 85% chance of a 25 basis point cut by the Fed.

(With inputs from agencies.)