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August Core CPI up 0.3% vs economist estimates for 0.2%

rise

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Trump Media & Technology ( DJT ) shares slide, Solar stocks rally

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Indexes up: Dow 0.02%, S&P 500 0.58%, Nasdaq 1.55%

(Updated prices at 2:40 p.m ET/ 1840 GMT)

By Sinéad Carew and Shashwat Chauhan

Sept 11 (Reuters) - The S&P 500 index regained ground on

Wednesday with a boost from the technology sector offsetting

investor disappointment at the early morning inflation report,

which crushed hopes the Federal Reserve would cut interest rates

by 50 basis points next week.

The S&P 500 technology index reversed course

after opening lower and was last up 2.4% with its biggest boost

from Nvidia ( NVDA ), up 6.3%. Semafor reported that the U.S.

government is considering letting the AI chip company

export advanced chips to Saudi Arabia

.

Market sentiment was also driven by political

developments the day after U.S Presidential candidate Kamala

Harris put her Republican rival Donald Trump on the defensive in

a combative presidential debate.

The Labor Department reported the consumer price index

(CPI) rose 0.2% last month, in line with July.

Core CPI

, excluding volatile food and energy components, rose 0.3%

on a monthly basis, exceeding economist expectations for a 0.2%

rise.

This changed traders bets to a 85% probability for a 25

basis points cut by the Federal Reserve from 66% on Tuesday and

the probability of a 50 basis point cut fell to 13% from 34% a

day ago, according to CME Group's FedWatch tool.

"Maybe the market was looking for a softer inflation print

which would give the Fed more reason to cut by 50 basis points

next week." said Jack Janasiewicz, portfolio manager, at

Natixis. "This report was in-line to slightly hotter than

expectations. As a result, this puts a bit of pressure on the

Fed to cut by only 25 basis points."

As the day wore on investors may have come to terms with

the inflation numbers, according to Janasiewicz who also pointed

to technology as the stand out "which has helped prop up the

broader market."

At 02:40 p.m. the Dow Jones Industrial Average

rose 9.60 points, or 0.02%, to 40,746.56, the S&P 500

gained 31.81 points, or 0.58%, to 5,527.33 and the Nasdaq

Composite gained 263.22 points, or 1.55%, to 17,289.10.

Among the sector laggards, consumer staples

was down 1% while the S&P 500 financial index was down

0.8%.

Big U.S. lenders extended Tuesday's declines, sparked by

warnings

of a dip in trading revenue, a slower-than-anticipated

recovery in investment banking and an expected hit to interest

income from looming rate cuts.

After the Presidential debate, pricing for a Trump victory

was at 48 cents on online betting site PredictIt, and at 55

cents for a Harris win.

As a result, stocks expected to perform well under a Trump

presidency fell, with cryptocurrency and blockchain-related

shares and prison operators lower. Trump Media & Technology

Group ( DJT ) slumped 11.8%.

Meanwhile, solar stocks, seen as benefiting from a Harris

administration, attracted some buyers. First Solar ( FSLR ) was

up 14% while Sunrun ( RUN ) added 9% and SolarEdge Technologies ( SEDG )

was up 6.7%.

While the debate offered Wall Street little clarity on key

policy issues, some market watchers see Harris' proposals to

raise the corporate tax rate as likely to hit company profits,

while Trump's tougher stance on tariffs could stoke inflation.

GameStop ( GME ) dropped almost 15% after the videogame

retailer said it had filed for an offering of up to 20 million

shares and reported lower second-quarter revenue.

Shares of lithium miners jumped after Chinese battery giant

CATL said it plans to make adjustments to lithium

carbonate production in Yichun. Albemarle, one of the

largest lithium miners in the world, jumped 11.9%.

Advancing issues outnumbered decliners by a 1.01-to-1 ratio

on the NYSE where there were 274 new highs and 122 new loww.

On the Nasdaq, 2,039 stocks rose and 2,058 fell as

declining issues outnumbered advancers by a 1.01-to-1 ratio.

The S&P 500 posted 13 new 52-week highs and 17 new lows

while the Nasdaq Composite recorded 41 new highs and 120 new

lows.