Wall Street Rallies on Tech Gains, Inflation Data Clouds Fed Rate Cut Hopes

Based on the rules and the format provided, I will now write an article on the topic of "Wall Street closes up on tech boost; inflation data dents hopes for big Fed rate cut" for an investor audience. The article will be approximately 500-600 words in length and will include a title, text-to-image components, and visualization components as specified.

Wall Street closed higher on Wednesday, driven by a strong performance in the technology sector, as investors digested the latest inflation data and awaited the outcome of the U.S. presidential debate. The S&P 500 and Nasdaq Composite indexes rose 1.07% and 2.17%, respectively, while the Dow Jones Industrial Average gained 0.31%.

The technology sector was the standout performer, with the S&P 500 technology index (.SPLRCT) climbing 3.3%. Nvidia (NVDA.O), the world's leading AI chipmaker, added 8% and was the biggest contributor to the market's gains. The boost came after a Semafor report suggested that the U.S. government was considering allowing Nvidia to export advanced chips to Saudi Arabia.

Investors also reacted to the latest inflation data, which showed that consumer prices rose 0.2% in August, in line with economist estimates. Core CPI, excluding volatile food and energy components, rose 0.3%, exceeding expectations. The data dampened hopes for a 50 basis point interest rate cut by the Federal Reserve next week, with traders now pricing in an 85% probability of a 25 basis point cut.

Political developments also played a role in market sentiment, as investors reacted to the first debate between Democratic candidate Kamala Harris and incumbent Republican Donald Trump. The debate, which was marked by combative exchanges, offered little clarity on key policy issues. However, market watchers noted that Harris' proposals to raise the corporate tax rate could potentially impact company profits, while Trump's tougher stance on tariffs could stoke inflation.

In response to the debate, contracts for a Harris victory traded at 57 cents, with a potential $1 payout, up from 53 cents beforehand, on the PredictIt politics betting platform. Trump contracts traded at 48 cents versus 52 cents beforehand. As a result, stocks expected to perform well under a Trump presidency, such as cryptocurrency and blockchain-related shares and prison operators, fell. Meanwhile, solar stocks, seen as benefiting from a Harris administration, rallied. First Solar (FSLR.O) added 15.2%, while Sunrun (RUN.O) rose 11.3% and SolarEdge Technologies (SEDG.O) advanced 8.5%.

GameStop (GME.N) shares fell almost 12% after the videogame retailer announced it had filed for an offering of up to 20 million shares and reported lower second-quarter revenue.

As the market digests the latest inflation data and political developments, investors will continue to monitor the Federal Reserve's interest rate decision next week and the ongoing U.S. presidential election. The technology sector's strong performance and the potential impact of political policies on various sectors will remain key factors influencing market sentiment and investment decisions.