US stock markets closed mostly higher on Wednesday, driven by investor relief after July consumer price index (CPI) data aligned with forecasts. The Nasdaq Composite gained more than 100 points during the session, climbing 0.54% to close at 26,588.49. The S&P 500 rose 0.26% to 7,748.50, while the Dow Jones Industrial Average dipped approximately 22 points to finish at 53,770.27.

The market reaction followed the release of July CPI figures, which showed a month-over-month rise of 0.1% and a year-over-year increase of 3.4%. Both metrics were in line with analyst forecasts. The annual figure marked a second consecutive deceleration from June’s 3.5% reading. Core CPI, which excludes volatile food and energy prices, rose 0.2% on the month and cooled to 2.5% annually, representing the softest reading in five months.

Sector Performance

Most sectors within the S&P 500 posted positive returns. Information technology, real estate, and utilities stocks recorded the largest gains for the day. Conversely, consumer discretionary and materials stocks bucked the broader market trend, closing lower.

Earnings Movers

Corporate earnings results presented mixed signals for individual stocks:

• Performance Food Group Co. (NYSE: PFGC) shares fell around 6% after reporting fourth-quarter financial results that missed expectations. The company also issued first-quarter guidance below estimates.
• CoreWeave Inc. (NASDAQ: CRWV) surged over 19% following better-than-expected second-quarter financial results. The company raised its FY26 sales guidance.

Investors are now awaiting earnings reports from Applied Materials Inc. (NASDAQ: AMAT), Applied Industrial Technologies Inc. (NYSE: AIT), and Dillard’s Inc. (NYSE: DDS).

What the Numbers Show

The divergence between headline CPI and core CPI highlights shifting inflationary pressures. While headline CPI decelerated to 3.4% year-over-year, core CPI cooled more significantly to 2.5%, the lowest level in five months. This suggests that underlying price pressures, excluding volatile food and energy components, are easing faster than the broader index indicates, potentially supporting the positive market sentiment reflected in the 'Greed' zone reading of the CNN Business Fear and Greed Index.

Market Sentiment

The CNN Business Fear and Greed Index improved slightly to a reading of 62, up from a prior reading of 61. The index remains in the "Greed" zone, indicating that investor confidence is high despite the mixed sector performance. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greed, based on seven equal-weighted indicators.

The Nasdaq Composite unofficially ended its trading session on a positive note, rising 133.32 points, or 0.50%, to finish at 26,578.77.

Session performance

The index logged a gain of 133.32 points during the session, representing a 0.50% advance. The closing level of 26,578.77 marks the unofficial final reading for the session.