Small Caps Rally, AMD Hits 13-Month Highs: What's Moving Markets Wednesday?

Market Performance - Tech-heavy indices showed little movement, while small caps and blue chips surged, indicating a broadening market rally [1] - The S&P 500 increased by 0.1% to 6,451.86, slightly retreating from an all-time high of 6,480 [2] - The Russell 2000 rose by 1.3% after a 3% jump on Tuesday, marking its best two-day rally since April 9 [3] Economic Indicators - Treasury Secretary Scott Bessent called for a 50-basis-point rate cut in September, suggesting current rates should be 150-175 basis points lower [3] - July inflation data showed headline CPI at 2.7% year-over-year, below the expected 2.8%, while core inflation rose to 3.1% from 2.9% [4] Sector Performance - Healthcare and materials sectors led equity gains, while industrials and utilities lagged [4] - Data center-linked stocks weakened, with GE Vernova Inc. dropping 6% after significant year-to-date gains [5] - Advanced Micro Devices Inc. outperformed in the semiconductor sector, increasing by 5% to its highest since mid-July 2024 [5] Commodity and Cryptocurrency Trends - Gold rose by 0.3% and silver gained 1.6%, supported by a weaker dollar and falling Treasury yields [6] - Oil prices fell, with WTI down 1.4% to $62.23, marking its eighth loss in ten sessions [6] - Bitcoin remained steady at $120,000 [6] Stock Movements - Cava Group Inc. fell by 15%, while CoreWeave Inc. dropped 18%, and Performance Food Group Company rose by 4.1% [11] - U.S.-listed Chinese stocks rallied, with Alibaba Group Holdings Ltd. up 3%, Baidu Inc. rising 3.7%, and Li Auto Inc. gaining 3.6% [11]