US stocks close midweek with continued rise; S&P 500, Nasdaq hit new record highs

ISTANBUL

US stocks ended with gains Wednesday, extending the previous day's gains as lower-than-expected inflation data bolstered optimism for an earlier Fed rate cut.

The Dow was up 1.04%, or 463.66 points, to close at 44,922.27.

The Nasdaq composite rose 0.14%, or 31.24 points, to end at 21,713.14, hitting another record high for the second day

The S&P 500 added 0.32%, or 20.82 points, to 6,466.58, also reaching a new record high.

AMD climbed 5.37% to lead the gains in tech stocks, while Apple rose 1.6%. Shares of Paramount Skydance surged 36.7%.

The gains followed the tamer-than-expected annual inflation rate, which was at 2.7% in July, with a monthly rate of 0.2%.

The data boosted optimism for the US economy and an earlier Federal Reserve rate cut.

US producer inflation data, due Thursday, is also important for investors seeking more insight into price pressures.

While statements from Fed officials are also being closely monitored, Chicago Fed President Austan Goolsbee stated that they are trying to understand whether the Trump administration's tariffs will have a temporary or permanent impact on inflation, which will shape the bank's timing of interest rate cuts.

Atlanta Fed President Raphael Bostic stated that he believes a single interest rate cut this year would be appropriate as long as the labor market remains robust.

Meanwhile, US President Donald Trump is reportedly considering 11 candidates to head the Federal Reserve once the current chair Jerome Powell's tenure ends in May, according to CNBC.

Possible candidates include three who had not been publicly named before: Jefferies Chief Market Strategist David Zervos, former Fed Governor Larry Lindsey, and Rick Rieder, chief investment officer for global fixed income at BlackRock.

They join eight other candidates, including Fed Governor Chris Waller, Fed Vice Chair Philip Jefferson, and Fed Vice Chair for Supervision Michelle Bowman, all of whom the finance news broadcaster says it verified as potential heads under consideration.