Dow Gains After Inflation Surprise While Cisco and Cerebras Shares Drop

The Dow Jones Industrial Average edged higher on Thursday after U.S. inflation data came in lower than expected, providing a boost to equity markets. The gain was short-lived, however, as technology shares led a decline later in the session. Cisco Systems fell sharply after reporting weaker-than-anticipated earnings, while Cerebras Systems, a developer of AI processors, saw its stock plunge amid concerns over demand.

Analysts noted that the softer inflation numbers reduced expectations of near-term interest-rate hikes, which helped lift the broader market. > "The data gave investors a reason to breathe easier on the rate outlook," said a market strategist at a major brokerage.

Cisco's results missed revenue forecasts, prompting a sell-off that weighed on the Dow's early gains. Cerebras, which has been highlighted for its high-performance AI chips, experienced a steep decline as investors reassessed growth prospects in the sector.

The mixed performance underscores the market's sensitivity to both macroeconomic indicators and company-specific earnings reports.