Treasury yields moved lower after fresh data showed inflation in the United States eased slightly in July.US stock market today: Wall Street moved closer to fresh record highs on Wednesday after upbeat earnings from several artificial intelligence companies reinforced confidence in the sector, while a softer-than-expected US inflation reading added to investor optimism.Artificial intelligence-linked stocks were among the biggest contributors to the rally after quarterly results from several companies exceeded market expectations, strengthening the view that the sector is generating enough growth to support its lofty valuations, according to an AP report.The S&P 500 advanced 0.3%, putting the benchmark on course for its first gain since reaching an all-time high on Friday. By 10:30 a.m. Eastern time, the Dow Jones Industrial Average had risen 57 points, or 0.1%, while the Nasdaq Composite outperformed with a gain of 0.7%.AI stocks lead rallySuper Micro Computer surged 14.2% after reporting quarterly earnings per share that came in 84% above analysts' estimates. The company also issued profit and revenue guidance for the coming quarters that exceeded Wall Street forecasts.Cloud-based AI computing provider CoreWeave jumped 18.6% after posting quarterly revenue that surpassed expectations while reporting a smaller loss than analysts had anticipated. Chief Executive Officer Michael Intrator said customer demand is gathering pace as more large enterprises adopt artificial intelligence technologies.Nvidia, whose AI chips power CoreWeave's cloud infrastructure, gained 3.1%, making it one of the biggest drivers of the S&P 500's advance.The gains marked a rebound for AI-related stocks after months of volatile trading. Following a sharp rally to record highs, the sector had come under pressure as investors questioned whether valuations had outpaced fundamentals.Market participants have been looking for evidence that companies making heavy investments in AI are translating those expenditures into stronger profits, which would, in turn, sustain demand for AI chips and other hardware used in building data centres.Inflation moderatesWall Street also drew support from the bond market, where Treasury yields moved lower after fresh data showed inflation in the United States eased slightly in July. The report indicated that consumer prices, including gasoline, groceries and other everyday expenses, were 3.4% higher than a year earlier.Although inflation remained elevated, the reading was an improvement from the 3.5% annual rate recorded in June.The moderation in inflation could give the Federal Reserve greater flexibility to delay further interest rate increases. While higher borrowing costs help contain inflation, they also slow economic activity by raising the cost of loans for households and businesses. Elevated interest rates typically also weigh on stock prices and other investment assets.Federal Reserve policymakers have remained divided over whether the central bank should have already resumed raising interest rates. Following Wednesday's inflation report, traders scaled back expectations of a rate increase at the Fed's September policy meeting.According to CME Group data, markets are now pricing in a 38% probability of a September rate hike, down from roughly an even chance a day earlier.The shift in expectations pushed the benchmark 10-year US Treasury yield down to 4.65% from 4.70% at Tuesday's close. Even after the decline, the yield remained well above the 3.97% level seen before the outbreak of the war with Iran, which drove up oil prices and intensified inflation concerns.Oil prices also softened during Wednesday's trading, with Brent crude easing 0.4% to $88.55 a barrel.The earlier rise in bond yields has already lifted long-term mortgage rates to their highest level in a year, weighing on the housing sector.Overseas, equity markets delivered a mixed performance across Europe and Asia.South Korea's Kospi index surged 3.7%, making it one of the strongest-performing major markets globally. The benchmark has been at the centre of recent volatility in artificial intelligence-related stocks because of its heavy exposure to technology giants Samsung Electronics and SK Hynix.