Wall Street Significantly Higher After Inflation Cools in July

Stock markets in New York rose sharply on Wednesday. Investors processed the latest inflation data from the United States. This showed that inflation cooled somewhat in July compared to June.

However, Americans’ livelihoods became 8.5 percent more expensive last month. In June, inflation was still 9.1 percent.

The Federal Reserve has already started raising interest rates in the US to combat high inflation. In the past two interest rate decisions, interest rates were raised by solid steps of 0.75 percentage points. However, now that inflation appears to have cooled somewhat, the Fed may be able to raise interest rates somewhat less strongly with its next interest rate decision in September.

Shortly after opening, the Dow-Jones index was 1.4 percent higher at 33,225 points. The broad S&P 500 rose 1.6 percent to 4,188 points, and the technology gauge Nasdaq gained 2.1 percent to 12,755 points.

Tesla rose 3.2 percent. CEO Elon Musk has sold nearly $7 billion in shares of the electric car manufacturer to have enough money to take over Twitter. For example, the richest man in the world is preparing for a possible mandatory purchase of a social networking company. Musk recently withdrew from the purchase of Twitter, but the messaging service wants to enforce the deal through the courts. Shares of Twitter rose 3.5 percent.

Apple won 1.7 percent. Taiwan’s TSMC, the world’s largest chip maker, saw sales rise nearly 50 percent in July, helped by continued strong demand for semiconductors. TSMC is the main chip supplier to iPhone maker Apple. In addition, Taiwanese electronics company Foxconn, which makes iPhones for Apple, saw profits rise in the past quarter.

Coinbase gained 3.5 percent, despite disappointing numbers. The crypto exchange suffered more losses than expected last quarter due to digital currencies such as bitcoin depreciation. Turnover was also disappointing. Roblox plunged 5 percent after disappointing results from the video game developer.

Fast food chain Wendy’s made more profit than expected last quarter, but turnover was disappointing. As a result, the stock fell 1.7 percent. Entertainment group Walt Disney, which comes with results after the closing bell, rose 2 percent.