Stock Market Today: S&P 500 Rises as Nvidia & AI Stocks Rally, Dow Jones Lags

U.S. stocks moved higher Wednesday, Aug. 12, after softer inflation data reduced expectations for a Federal Reserve rate increase, while Nvidia and other artificial intelligence stocks lifted the technology sector. The S&P 500 traded near record territory, but weakening market breadth and a lagging Dow Jones Industrial Average showed that the rally was not equally strong across Wall Street.

At 9:38 a.m. Eastern time, the S&P 500 rose 0.33% to 7,753.74, the Dow Jones gained 0.21% to 53,902.38, and the Nasdaq Composite climbed 0.64% to 26,614.17. Technology led the S&P 500 sectors with a 1.2% advance, while the Philadelphia Semiconductor Index gained about 3%.

However, the early gains narrowed as trading continued. By about 10:02 a.m. Eastern, the S&P 500 was still up around 0.3%, but the Dow had pared its advance to just 19 points. Only 179 S&P 500 companies were higher, and just four of the index's 11 sectors were advancing, highlighting a relatively narrow rally.

Why Is the S&P 500 Rising Today?

The main economic catalyst was the July Consumer Price Index, which rose 0.1% from June and 3.4% from a year earlier. Core CPI, which strips out food and energy, increased 0.2% for the month and slowed to 2.5% on an annual basis from 2.6% in June.

The report gave investors some relief after higher energy prices had revived concerns that the Fed could resume rate increases. Traders increased bets that policymakers will leave the federal funds rate unchanged at the Sept. 15-16 meeting, although markets still see a meaningful chance of a hike.

The Fed kept its benchmark rate at 3.50% to 3.75% on July 29. Three policymakers dissented and favored a quarter-point increase, underscoring that inflation remains an active debate inside the central bank.

S&P 500 Weekly Bullish Breakout Chart. Source: Wick (@ZeroHedge_) via X

The supplied S&P 500 weekly chart also shows why bulls remain interested near current levels. The chart from Wick (@ZeroHedge_) places an important breakout area near 7,618, with the index now trading above that level.

From a technical perspective, holding above roughly 7,618 would keep the recent breakout intact and preserve the broader pattern of higher highs and higher lows. A sustained move back below that level would weaken the breakout and shift attention toward the lower support area around the low-7,300s. The chart supports a bullish trend interpretation, but it does not guarantee that the index will continue higher.

Nvidia Stock and AI Earnings Drive Technology Higher

Artificial intelligence stocks supplied another major source of strength Wednesday. Nvidia gained about 2% in early trading, while Micron Technology rose 4.4% and Broadcom advanced 1.4%.

The bigger moves came from AI infrastructure companies. CoreWeave surged more than 20% after raising its annual revenue, operating-profit and capital-spending forecasts. Its revenue backlog increased to $104.2 billion in the second quarter, excluding more than $25 billion of new commitments secured early in the current quarter. Super Micro Computer climbed more than 16% after forecasting fiscal 2027 revenue above Wall Street estimates.

Nvidia itself traded near $223.80 at 11:16 a.m. Eastern, up about 2.9% on the day.

The weekly Nvidia chart supplied by The Long Investor places immediate technical resistance around $229.42. A convincing move above that area would strengthen the bullish setup, while the chart identifies a higher extension near $268.13

Nvidia Weekly Price Chart. Source: The Long Investor (@TheLongInvest) via X

The Long Investor argues that another 20% move remains possible over the next several weeks. From the chart's $220.31 reference price, a 20% gain would place Nvidia near $264.37, close to the chart's $268.13 extension. That should be treated as a conditional technical scenario rather than a confirmed price target.

Nvidia's next major fundamental catalyst is close. The company is scheduled to report its fiscal second-quarter results on Aug. 26, giving investors another test of AI spending and demand for accelerated computing.

Dow Jones Faces a Dow Theory Warning

The Dow Jones is participating less convincingly in Wednesday's rally, and the third supplied chart highlights another potential warning.

The chart from BraVoCycles Newsletter (@BraVoCycles) shows the Dow Jones Transportation Average trending lower while the Dow Jones Industrial Average remains comparatively stronger. That divergence matters under traditional Dow Theory, which looks for confirmation between industrial and transportation stocks before treating a major trend signal as reliable. Reuters noted earlier this year that confirmation from both averages is central to the theory.

Dow Theory Divergence. Source: BraVoCycles Newsletter (@BraVoCycles) via X 

For now, the chart supports the description of a pending warning, not a confirmed Dow Theory sell signal. Continued deterioration in transportation stocks accompanied by corresponding weakness in the Industrials would strengthen the bearish case. If Industrials instead hold their trend and Transports recover, the divergence could fade without producing confirmation.

What Could Move the S&P 500 and Dow Jones Next?

Treasury yields remain another key factor for the stock market. After the CPI release, the two-year Treasury yield was around 4.18%, while the benchmark 10-year yield traded near 4.66%.

Investors will next watch the July Producer Price Index on Thursday, Aug. 13, for more evidence on inflation pressures.

The near-term stock market picture therefore remains constructive but uneven. Cooling inflation, AI earnings and strength in Nvidia are supporting the S&P 500 and Nasdaq, while weak breadth and the transportation-stock divergence argue for some caution. For the S&P 500, holding the breakout above the chart's 7,618 area would keep bulls in control; for the Dow Jones, the next question is whether Industrials confirm the weakness already visible in Transports or resist it.