Tech Stocks Drive Wall Street Surge; Nvidia Gains 13% in Just Three Days

Investors reacted to lower-than-expected inflation data, boosting bets on a potential interest rate cut by the Federal Reserve. The market was also absorbing the impact of the first debate between Donald Trump and Kamala Harris.

The three major Wall Street indexes closed with gains on Wednesday, led by advances in technology stocks, particularly Nvidia, which has soared more than 13% in just three days.

The Dow Jones Industrial Average, composed of 30 major companies, rose 0.31% to 40,861.71 points. The S&P 500, which tracks 500 companies, gained 1.07%, reaching 5,554.13 points. Meanwhile, the tech-heavy Nasdaq Composite surged 2.17% to 17,395.53.

Investors were encouraged by inflation data that came in lower than expected, reinforcing hopes for a Federal Reserve interest rate cut. The market was also digesting the first debate between Donald Trump and Kamala Harris.

The U.S. Department of Labor’s Consumer Price Index (CPI) dropped to 2.5% year-over-year in August, a larger decline than anticipated. This marked the fifth consecutive month of decreases, bringing inflation down to a three-and-a-half-year low.

Investors are now preparing for the Federal Reserve’s meeting on September 17-18, where the central bank is expected to announce the largest rate cut since 2001. Traders remain uncertain about the extent of the Fed’s policy shift.

Tech giants, which benefit from lower interest rates due to their high capital expenditures, saw significant gains. Nvidia, a standout in the artificial intelligence sector, jumped 8% and has now risen 13% over the past three days.

Among sectors, technology led the way with a 3.25% gain, followed by consumer discretionary stocks, which rose 1.32%. Notable performers in the Dow Jones included American Express (up 3.57%) and Intel (up 3.48%), while Travelers (-3.16%) and P&G (-2.18%) posted declines.