Wall Street traded higher in choppy trading on Wednesday after falling in a trading day on hot inflation reports, while Nvidia surpassed Alphabet in market capitalization to become the third-most valuable company in the United States.

Nvidia NVDA The market capitalization of Alphabet surpasses that of Alphabet GOOG just days before the rising star of the AI boom is due to report its fourth-quarter earnings report. Nvidia's shares rose 0.7%, while Google's parent company fell 0.2%.

"If AI is truly a game-changer for the world, Nvidia will be at the forefront of it all," said Dennis Dick, founder and market structure analyst at Triple D Trading.

Thomson ReutersNvidia market value

Meta Platforms, a large-cap interest rate sensitive METAand other chip stocks, such as Advanced Micro Devices AMDand Qualcomm QCOM, with an increase of between 1.8% and 2.5%.

On Tuesday, stock indices briefly fell to a more than one-week low on blue-chip Dow as core consumer prices (LINK) for January remained nearly double the Fed's 2% target, forcing investors to reassess interest rate cut expectations DJIThe worst performance in 11 months.

Thomson ReutersUS CPI

Chicago Fed President Austan Goolsbee said that inflation will still be back on the 2% target track, even if prices rise slightly faster than expected in the future.

Dick added: "I think the inflationary trend is still very positive for the market, and many people who are underinvested in the market are taking advantage of this decline to enter the market."

Since November, euphoria over an early start to monetary policy easing has fueled Wall Street's rally, paving the way for a bull run in the S&P 500 this year.

However, in the face of the resilience of the U.S. economy, policymakers may need to wait longer (link) for more evidence of easing price pressures.

The CME FedWatch tool shows that bets on at least a 25 basis point rate cut in May are 35%, down from 63% earlier in the week, while expectations for a rate cut in June are 81%.

At 11:34 a.m. ET, the Dow Jones Industrial Average DJIIt was up 54.02 points, or 0.14%, at 38,326.77, and the S&P 500 SPXIt was up 21.70 points, or 0.44%, at 4,974.87, with the Nasdaq Composite IXICIt rose 89.70 points, or 0.57%, to 15,745.30.

Uber UBERIt rose 11.7% to an all-time high, led by a $7 billion share repurchase program (link) in the industrials sector S5INDUUp 1%, leading gains across sectors. Small-cap Russell 2000 Index <. RUT> also rose 1.2%.

Lyft LYFTIt surged 32.9% after the ride-hailing platform beat profits and said it would generate positive free cash flow for the first time in 2024.

Robinhood Markets HOODThe jump was 9.4% after the company unexpectedly reported fourth-quarter profits.

Thanks to Bitcoin BTCUSDThe market capitalization topped $1 trillion for the first time since Nov. 21, with crypto stocks (link) such as Coinbase COIN、Marathon Digital MARAand Riot RIOT, with an increase of between 10.8% and 12.4%.

On the New York Stock Exchange, the number of rising stocks outnumbered the losing stocks by a ratio of 4.00:1, and on the NASDAQ by a ratio of 3.01:1 compared to the losing stocks.

The S&P has 26 new 52-week highs and 2 new lows, and the Nasdaq has 57 new highs and 51 new lows.