[New York Stock Exchange] Major Indices Rise on Semiconductor Rally... Inflation Data in Line with Expectations

Microsoft Surges 15% While Meta Plunges Over 9%

June PCE Comes in Line With Expectations

On the 30th (local time), all three major U.S. stock indices are rising, buoyed by a rally in the semiconductor sector.

As of 11:12 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average is up 131.17 points (0.25%) from the previous trading day to 51,725.31. The S&P 500 index, focused on large-cap stocks, has climbed 62.68 points (0.83%) to 7,378.83. The tech-heavy Nasdaq index is up 502.84 points (2.06%) at 24,945.24.

New York Stock Exchange. New York, USA—Special Correspondent Yoonju Hwang

On this day, the market is being led by Microsoft and semiconductor companies. Microsoft's stock price surged 15% after it announced growth in its Azure division. In contrast, Meta plunged more than 9% due to a weak sales outlook and a 91% drop in free cash flow.

Steven Evans, Chief Investment Officer at Fave Finance, commented, "Ultimately, this is a story of two different AI investment strategies," and further explained, "One company is increasing profits despite massive spending, while the other is letting those costs erode its net income."

Investors monitored the bond market closely, as 30-year Treasury yields hovered near highs last seen in 2007 following the Federal Reserve's decision to hold rates steady. After the Fed’s rate announcement the previous day, the yield on 30-year U.S. Treasuries climbed by 6 basis points (1bp = 0.01 percentage points), breaching 5.2%.

CNBC reported that the bond market was reacting to concerns that the fight against inflation is falling behind after the Fed’s rate pause.

The U.S. Department of Commerce announced that the Personal Consumption Expenditures (PCE) Price Index for June rose 3.7% from a year earlier. Compared to the previous month, it fell by 0.1%. The core PCE Price Index, excluding energy and food, increased 3.3% year over year and 0.1% month over month.

The PCE Price Index released on this day was largely in line with expert forecasts compiled by Dow Jones. Only the month-over-month gain in the core index came in below the experts' projection of 0.2%.

The U.S. second-quarter growth rate also slowed to 1.5%, missing the forecast of 1.8%. However, the fundamental momentum supporting the economy remained solid.

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