The number the market had been waiting for finally landed, and it was tame. July's inflation report came in right on expectations, cooling to a 3.4% annual pace, and that was enough to ease the fear of another Fed rate hike and let risk appetite run. The Nasdaq climbed 0.54% on a fresh wave of AI-infrastructure earnings, and, most striking of all, gold stormed to a fresh record near $4,408 as the softer inflation print reinforced the case for an easier Fed.
Market snapshot
| Instrument | Level | Move |
|---|---|---|
| US equities (Wed Aug 12 close) | ||
| Nasdaq Composite | 26,588 | +0.54% · AI leads |
| S&P 500 | ≈ 7,749 | +0.26% |
| Dow Jones | ≈ 53,770 | −0.04% · flat |
| The data | ||
| July CPI (headline) | +3.4% y/y | in line · cooled from 3.5% |
| Core CPI | +2.5% y/y | eased from 2.6% |
| The movers (AI infrastructure) | ||
| CoreWeave / Nebius | AI earnings | ≈ +18% / +16.5% |
| Super Micro (SMCI) | beat | ≈ +9% |
| Commodities & FX | ||
| Gold (XAU/USD) | ≈ $4,408 | +0.86% · record |
| WTI Crude | ≈ $82.66 | −0.65% · below $83 |
| 10-Year Treasury | ≈ 4.68% | eased |
| USD/JPY | 159.47 | +0.11% |
| EUR/USD | 1.1523 | −0.17% · firmer USD |
Index closes are for the Wednesday 12 August session; single-stock and commodity figures are approximate and sourced from live price pages. Always check live prices with your broker.
Inflation cools, and the market exhales
All week the market had one eye on this print, and it delivered relief. The July Consumer Price Index rose 3.4% from a year earlier, exactly what economists expected and a step down from June's 3.5%, while the monthly gain was a mild 0.1%. Strip out food and energy and core inflation eased to 2.5%, also in line. None of it was dramatic, and that was precisely the point: with the Fed this year debating whether it needs to raise rates again, an inflation reading that keeps cooling takes the pressure off. Traders nudged up the odds that the Fed simply holds next month, and stocks, which hate the idea of higher rates, took the cue to push higher.
Live gold chart (last three months). Prices shown are current, not the session covered above.
AI infrastructure powers the rally
The tape's real energy came from a single theme: the companies that build and rent out the hardware behind artificial intelligence. Earnings from that corner were strong enough to reignite the whole trade. CoreWeave jumped about 18% after narrowing its losses and meeting revenue expectations, cloud-and-AI peer Nebius Group soared roughly 16.5% on booming demand that let it win bigger contracts and raise prices, and Super Micro added around 9% after beating estimates. It is the same story that has driven this market for months, that the spending on AI infrastructure is still accelerating, and a soft inflation print gave investors the room to bid it up again. That concentration is a strength on days like this and a risk on the days it reverses.
Gold storms to a fresh record
The single most eye-catching move was in gold. As rate-hike fears faded, the metal that hates high rates pushed to a fresh record near $4,408, up about 0.86% on the day and roughly 10% over the past month. The logic is straightforward: cooler inflation and a Fed less likely to hike lower the opportunity cost of holding an asset that pays no interest, and steady central-bank and safe-haven buying has kept a firm bid under the market all year. Gold has now climbed more than 150 dollars since our last wrap, a reminder of how powerful the trend has been. Oil went the other way, with WTI slipping below $83 as traders weighed the prospect of fresh Strait of Hormuz negotiations.
What it means for traders
The takeaway is that the market's central question this year, whether the Fed is done or has more hikes to deliver, keeps tilting toward "done," and every in-line inflation print reinforces that. That backdrop favours the assets that have led: big tech and, above all, gold. But two cautions are worth holding. First, a rally this concentrated in AI names is only as steady as the next earnings report from that group. Second, gold running this far, this fast, can reverse sharply when the narrative wobbles. Into trends this strong the discipline is the same as ever: keep risk small per trade, size every position deliberately, and if you are trading the gold move, know exactly what a pip on gold is worth before you commit. You can revisit where the week began in our previous wrap.
This market wrap is for information and education only and is not financial advice, a forecast, or a recommendation to buy or sell any instrument. Prices, yields and percentage moves are approximate, sourced from public price pages and reports, and may be delayed or revised; single-stock moves cited are for context. Trading forex, CFDs and leveraged products carries a high level of risk and may not be suitable for all investors; you can lose more than your deposit. Always do your own research.