Tech Stocks Rally on Inflation News

The major U.S. indexes were mixed after a slowdown in the annual rate of inflation raised optimism that the Fed may be able to pull back on boosting interest rates to control rising prices. The news sent bond yields tumbling.

Tech stocks, which become more attractive when borrowing costs fall, advanced. Alphabet (GOOGL) shares jumped 4% after the company announced more uses of artificial intelligence (AI) in its products and introduced a folding cellphone. Amazon (AMZN) shares were up 3%, extending their rally into a seventh-straight session. Shares of Apple (AAPL), Microsoft (MSFT), and Salesforce (CRM) gained. Akamai Technologies (AKAM) was the best-performing stock in the S&P 500 after the cloud services provider exceeded earnings and revenue estimates. 

Electric truck maker Rivian (RIVN) posted a smaller-than-expected loss, and shares advanced. Shares of Etsy (ETSY) gained as the online marketplace added a feature for couples to put their wedding registries on the site. Roblox (RBLX) shares rose on the video game firm’s revenue and user data.

Axon Enterprise (AXON) shares plunged after the maker of Tasers and other military and police equipment reported a drop in gross margins. Shares of KeyCorp (KEY), Lincoln National Corporation (LNC) and other regional banks slipped. 

Airbnb (ABNB) shares dipped on the vacation rental platform’s summer season guidance. Shares of billionaire investor Carl Icahn’s Icahn Enterprises (IEP) sank after regulators asked for information about the company’s corporate governance. The news lifted shares of Illumina (ILMN), which is currently in a proxy fight with Icahn. 

Oil and gold futures fell. The U.S. dollar declined against the euro, pound, and yen. Prices for most major cryptocurrencies were in the green.