USA Stock Market Breaking News: Wall Street Reacts to Inflation Data, Dow and Nasdaq Surge – August 10, 2025

10 August 2025

The U.S. stock market opened with a burst of energy today as fresh inflation data sent a wave of optimism across Wall Street. The Dow Jones Industrial Average jumped more than 300 points in early trading, the S&P 500 climbed 1.2%, and the Nasdaq Composite surged nearly 1.5%, driven by strong gains in technology and consumer stocks.

The latest Consumer Price Index (CPI) numbers showed inflation cooling faster than expected, coming in at 3.1% year-over-year, compared to forecasts of 3.3%. This marks the slowest inflation growth in nearly three years and has boosted investor confidence that the Federal Reserve may ease its aggressive stance on interest rates.

Why This Matters for Investors

Lower inflation means the Fed could cut rates sooner, making borrowing cheaper for businesses and consumers. This tends to boost stock prices, especially in growth sectors like technology. Traders are now pricing in a 60% chance of a rate cut at the Fed’s next meeting, according to CME’s FedWatch tool.

Tech Stocks Lead the Rally

Big names like Apple, Microsoft, and Nvidia saw gains of more than 2% each, with AI-related stocks also catching investor attention. Financial analysts note that if inflation continues to cool, the tech-heavy Nasdaq could see a strong rally into the final quarter of the year.

Energy and Commodities Watch

Oil prices dipped slightly to $81 per barrel as global demand forecasts were revised lower. Gold, often seen as a hedge against inflation, fell by 0.8% as investors moved back into equities.

Market Outlook

Many analysts believe today’s rally could signal the start of a late-summer bull run. However, some caution that any unexpected rise in inflation or geopolitical tension could quickly reverse these gains.

Bottom line: With cooling inflation and optimism about potential Fed rate cuts, U.S. stocks are showing strong momentum today. Investors will be watching closely to see if this rally holds through the week.

---

Disclaimer: This content is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.