Palo Alto Stock Rises on Cool Inflation, Easing Fed Fears

Palo Alto Networks Inc. (NASDAQ:PANW) shares are climbing Wednesday along with other software stocks, helped by cooler-than-expected inflation data that may ease concerns about further Fed rate hikes. Palo Alto Networks shares are testing new highs. What’s behind PANW new highs? Cooler Inflation Data Eases Rate Hike Concerns Wednesday’s inflation report came in softer than forecasters had penciled in. The Bureau of Economic Analysis said the Fed’s preferred inflation gauge climbed just 0.3% from July to August, undershooting the 0.4% economists expected. Yearly headline inflation stayed flat at 3.4%, matching last month’s revised figure and landing well under the 3.7% consensus. Betting markets shifted in response. CME FedWatch data now shows traders assigning roughly a coin-flip’s odds, 52.9%, to the Fed holding rates steady at its late-October meeting, versus 47.1% odds of another quarter-point increase. Tech and software names led broader indexes higher by midday Wednesday, even though crude prices pushed upward and long-term Treasury yields stayed pinned near multidecade peaks. White House AI Pact May Ease Concerns About Legacy Software Disruption Separately, President Donald Trump rolled out a fresh voluntary AI safety framework Tuesday following a White House sit-down with leading tech executives. Dubbed the White House Accord on Super Intelligence, the agreement pushes for outside audits, tighter internal checks and direct board involvement in overseeing powerful AI systems. Trump described the commitment as “morally binding,” framing it as putting the onus on AI developers themselves to keep their own technology in check. Alphabet’s Sundar Pichai, Anthropic’s Dario Amodei, Meta’s Mark Zuckerberg, OpenAI’s Greg Brockman, xAI’s Elon Musk and Nvidia’s Jensen Huang all put their names on the agreement alongside Trump. The timing matters here. Investors have increasingly worried that fast-moving AI agents could upend established software businesses, a fear that’s picked up the nickname “SaaSpocalypse.” Seeing major AI developers formally commit to policing themselves and adding real oversight structures appears to be taking some of that edge off today, giving a lift to legacy software names like Palo Alto Networks along with the rest of the sector. PANW Shares Are Moving Higher PANW Price Action: Palo Alto shares were up 2.92% at $399.75 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro. Read Also: Rate Nasdaq 100 Climbs as Cooler PCE Cuts Rate Hike Bets, Micron Earnings Loom: Stock Market Today Image: PJ McDonnell/Shutterstock