Nasdaq closes 2% higher as annual inflation slows to lowest level since Feb. 2021

US major indices rebounded as markets assessed the decline in the annual inflation rate for August, reaching its lowest level since February 2021. Earlier in the session, indices had come under pressure as the monthly core consumer price index (CPI) reading exceeded expectations.

By the close of Wednesday's trading, the Dow Jones Industrial Average rose 0.3%, or 124 points, to 40,861. S&P 500 gained over 1%, adding 58 points to close at 5,554. NASDAQ surged about 2.15%, or 369 points, ending at 17,395.

Technology and semiconductor stocks advanced, with Nvidia shares gaining over 8% to $116.78, while AMD shares jumped 4.9% to $149.84.

Looking at the European markets, the STOXX Europe 600 settled at 508 points after the European index rose to 511.54 points.

Meanwhile, the German DAX added about 0.35%, or 64, points to close at 18,330 points, the British FTSE Russell decreased by 0.15% to 8,193 points, and the French CAC fell almost the same percentage to 7,396 points.

In Japan, Nikkei decreased by 1.5%, or 539 points, to 35,619 points, while the broad Topix index fell by 1.8% to 2,530 points.

In the oil market, the prices of futures contracts for standard Brent crude for November delivery rose by more than 2%, or $1.42, to $70.61 per barrel.

US Nymex crude futures for October delivery rose by 2.35%, or the equivalent of $1.56, to $67.31 per barrel.

Regarding gold, futures prices for the yellow metal for December delivery settled at $2,542.40 per ounce.

Economic data indicated a slowdown in the annual consumer price inflation rate to 2.5% in August from 2.9% in July, while the increase stabilized in the monthly consumer prices at 0.2% during the month. The rise in the core index—excluding volatile components—accelerated to 0.3% after increasing 0.2% in July.