AI Earnings Drive Nasdaq Rally as Inflation Fears Subside

A surge in artificial intelligence infrastructure stocks pushed the Nasdaq to the brink of a record high on Wednesday, fueled by robust earnings reports that overshadowed lingering geopolitical volatility. Investors responded to cooling inflation data, fueling optimism that the Federal Reserve will resist further interest rate hikes this September.

Editorial·August 12, 2026·reads: 1,824

AI Earnings Drive Nasdaq Rally as Inflation Fears Subside

The latest U.S. consumer price index figures for July showed a tempered rise, shifting market sentiment significantly. According to the CME FedWatch Tool, traders now assign a 55% probability that the central bank will keep rates steady at its next meeting, a notable shift from the previous uncertainty that gripped the trading floor.

Chipmakers led the charge as institutional confidence returned to the tech sector. Micron Technology posted a 4.4% gain, while Nvidia climbed 2% and Broadcom added 1.4%. This momentum propelled the semiconductor index to its strongest single-day performance in over a week. While energy prices remain elevated due to instability in the Middle East, the market appears focused on the cooling inflation narrative rather than the potential for renewed monetary tightening.