[New York Stock Exchange] Wholesale Price Index Slows... Nasdaq Rises Led by Strong Big Tech Stocks

On July 15 (local time), the three major U.S. stock indices on the New York Stock Exchange closed higher in a buying trend, as investors were reassured by successive inflation data releases.

The Dow Jones Industrial Average finished at 52,658.64, up 150.37 points (0.29%) from the previous session. The S&P 500 Index closed at 7,572.40, rising 28.81 points (0.38%). The tech-focused Nasdaq Composite jumped 162.22 points (0.62%) to 26,269.23.

Large-Cap Tech Stocks Rise

On this day, investment capital shifted from semiconductors to large-cap technology stocks. Amazon rose 3.02%, while Microsoft (MS) gained 2.78%. Apple jumped more than 4%, bringing its market capitalization closer to the 5 trillion dollar mark.

Semiconductor manufacturers fell across the board. Both Micron Technology and SanDisk plunged more than 8%. Lam Research declined by 3%, Intel by 4.43%, and AMD by 3.46%. SpaceX also continued its losing streak for a fourth consecutive trading day, with its intraday price dropping below its IPO offering price by $135 for the first time.

Financial stocks gained on the day. BlackRock surged 6.63% after posting second-quarter earnings that significantly exceeded expectations. The company announced that its assets under management surpassed 15 trillion dollars for the first time in history. Rival firms such as KKR and Blackstone also saw their share prices climb.

PayPal jumped more than 17% on news that payment service provider Stripe and private equity fund Advent International are seeking to acquire it. The American Depositary Receipts (ADRs) of China's Alibaba were up 4.79% as reports surfaced that the company’s AI model ‘Qwen’ would be integrated into Apple Intelligence.

Inflation Data Slows for the Second Day

Following the previous day, newly announced inflation indicators showed signs of slowing, improving investor sentiment. According to the U.S. Department of Labor, the Producer Price Index (PPI) for June fell 0.3% from the previous month, underperforming analysts' expectations for a flat reading. This marks the first monthly drop in PPI since August last year (-0.2%), as well as the steepest decline since April last year (-0.3%). The producer price, also known as wholesale price, is typically reflected in final consumer goods prices after a certain lag, making it a leading indicator for consumer prices.

Officials from the Federal Reserve (Fed) also eased concerns over monetary tightening. John Williams, President of the Federal Reserve Bank of New York, said in a speech that inflation has peaked and is expected to decline moving forward. According to CME FedWatch, the probability that the Fed will raise the benchmark interest rate at the monetary policy meeting on July 28–29 plunged from 31.0% on the 8th to 10.2% on this day.

Melissa Brown, Head of Applied Research at SimCorp Global Investments, analyzed, "Since current interest rates are still well above the target (2%), the possibility of further rate hikes is not entirely off the table," adding, "These days, the market appears to overreact to every single piece of news."

Meanwhile, as the United States and Iran continue military clashes over control of the Strait of Hormuz, international oil prices rose slightly. September Brent crude futures and August West Texas Intermediate (WTI) futures each closed up 0.26% and 0.33% from the previous session, to $84.95 and $79.60 per barrel, respectively.

This content was produced with the assistance of AI translation services.