IXIC: Nasdaq Composite Soars 1.4% to Record on Upbeat Inflation Data. Meta Leads the Mag 7 Pack.

Facebook parent added more than 3% Tuesday but each Mag 7 member finished the day in the green. The Fed faces a ton of pressure now.

🚀 Inflation Data Charms Markets

• The Nasdaq Composite IXIC jumped 1.4% to a record 21,681.90, while the S&P 500 tacked on 1.1% to close at 6,445.76 (also record). The Dow joined the party, adding 483 points, up 1.1%, to finish at 44,458.61.
• The rally came after July CPI clocked in at 2.7% year-on-year, just under the 2.8% consensus. Core CPI rose 3.1%, matching expectations and soothing fears that tariffs were pushing prices higher.
• Investors exhaled and shoved cash back into equities, especially tech — a sector that thrives when borrowing costs look set to fall.

📉 Lower Rates, Higher Tech Valuations

• Rate-cut odds for September surged to over 90% from 85% pre-data, with traders also upping bets for October and December cuts, per CME’s FedWatch Tool.
• For tech firms, cheaper money isn’t just about paying less on debt — it typically boosts their valuations. We’re talking here about companies valued on future earnings potential, and lower rates make those future cash flows more valuable today.
• Add in easier financing for expansion in AI, cloud, and R&D, and you’ve got the perfect macro tailwind for the Nasdaq’s growth-heavy roster.

🏆 Magnificent Seven: All Green, Meta on Top

• Every member of the Mag 7 finished higher, with Meta stock META leading the charge, up 3.2% to a record $790 a share. The Facebook parent is just $200 million shy of the $2 trillion market cap milestone.
• Amazon AMZN was the laggard, barely squeaking out a 0.1% gain, but enough to keep the streak alive.
• Meta’s surge comes on the heels of blowout earnings, relentless AI pushes, and Mark Zuckerberg’s high-profile AI talent raids from rivals like OpenAI and Apple.