FINWIRES · TerminalLIVE
FINWIRES

Update: S&P 500 Scales New Peak as Weak Wholesale Inflation Report Lifts Odds of Fed's Policy-Pause Extension

By

(Updates with index/price moves from the first paragraph.)

US equity indexes rose, with the S&P 500 hitting a new high, after a soft producer price inflation report increased the probability of a sixth consecutive monetary policy pause in September, and crude oil prices slumped.

The Nasdaq Composite rose 0.9% to 26,838.1, and the S&P 500 climbed 0.7% to 7,803.9 ahead of Thursday's close. The Dow Jones Industrial Average edged up 0.1% to 53,844.5, clawing out of intraday declines. The S&P 500 hit 7,816.70, its highest intraday level ever.

Communication services, real estate and technology topped the gainers, while materials led decliners.

The Producer Price Index held steady in July, following a 0.1% decrease in June, versus the 0.2% gain expected in a Bloomberg-compiled survey. Energy prices fell by 3.1% in the month amid a 9.8% slide in natural gas liquids, a 6.7% slump in diesel fuel, and a 5.7% drop in gasoline prices. Excluding food and energy, core PPI climbed 0.2%, still below the 0.3% gain anticipated and a 0.4% increase in June.

Annually, PPI was up 4.7% in July, and core PPI increased by 4.2%, both slowing from June.

The probability of the Federal Reserve extending its policy pause to September jumped to 65% on Thursday, from 59% a day ago and 45% a week earlier, according to the CME FedWatch tool.

Among companies with market capitalizations exceeding $200 billion each, eight of the top 10 by returns were in the technology sector after midday Thursday, according to data compiled by Finviz. Sandisk (SNDK), the leader of this pack with a 14% surge in the final leg of trading, said it expects revenue growth in the mid-to-high-teens over fiscal 2028 through fiscal 2030.

Meanwhile, the front-month US West Texas Intermediate crude oil contract dropped 2.5% to $81.23 per barrel, and global benchmark North Sea Brent declined 2.2% to $87.06 per barrel as traders weighed a downbeat demand-supply dynamic and a continuing stalemate in the Iran war.

Related Articles

Japan

US Equity Markets End Mixed Amid Tech Stock Gains, Lower Inflation Data

US equity indexes ended mixed Wednesday amid stock gains by some major technology stocks and a four-month low inflation rate report.* The consumer price index rose 3.4% in July from a year earlier, decelerating from 3.5% in June, according to data from the Bureau of Labor Statistics. The annual print matched the average forecast in a Bloomberg-compiled survey.* Iran could "prolong" its war with the US until President Donald Trump leaves office, CNN reported, citing a top adviser to the commander of Iran's Islamic Revolutionary Guard Corps.* September West Texas Intermediate crude oil fell $0.24 to settle at $82.96 per barrel, while October Brent crude, the global benchmark, was last seen down $0.29 at $88.62.* Super Micro Computer's (SMCI) shares were up 19%, the top gainer on the S&P 500, after the company issued an upbeat fiscal 2027 revenue outlook.* Cencora (COR) shares were down nearly 6%, one of the worst performers on the S&P 500, after the company said that certain Walgreens volume that was being serviced by the company, separate from the prime vendor agreement, has started moving outside the company from July 1.

Dow JonesNasdaq CompositeS&P 500$COR$SMCI
Japan

Update: US Equity Indexes Rise as Chipmakers Boost Technology, Cooling Inflation Lifts Bets for Fed Policy Pause

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes rose as strong results from several providers of artificial intelligence infrastructure boosted mega-cap chipmakers and as a decline in July's inflation rate to a four-month low lifted the odds of another Federal Reserve policy pause.The Nasdaq Composite rose 0.7% to 26,619.2, and the S&P 500 climbed 0.3% to 7,754.2 ahead of Wednesday's close. The Dow Jones Industrial Average edged up less than 0.1% to 53,813.3. Technology and real estate topped the gainers, while consumer discretionary and communication services led decliners in the final leg of trading.Super Micro Computer's (SMCI) shares surged 20%, the top performer on the S&P 500, after the company released an upbeat fiscal 2027 revenue outlook.CoreWeave (CRWV) reported a Q2 beat and raised guidance, with inference demand driving the upside despite higher near-term capital expenditures, Oppenheimer said in a note Wednesday. Its shares soared 20%, one of Nasdaq's leaders.Among companies with market capitalizations exceeding $200 billion each, nine of the top 10 by intraday returns were in the technology sector, according to data compiled by Finviz. The leader of this pack was SpaceX (SPCX), up 10% after saying it is releasing Grok 4.6.In economic news, the consumer price index rose 3.4% in July from a year earlier, decelerating from 3.5% in June and marking the slowest pace of growth since March, data from the Bureau of Labor Statistics showed. The annual print matched the average forecast in a Bloomberg-compiled survey. Core inflation, which excludes volatile food and energy items, eased to 2.5%, also as expected, from June's 2.6%.In geopolitical developments, CNN reported that Iran could "prolong" its war with the US until President Donald Trump leaves office, citing a top adviser to the commander of Iran's Islamic Revolutionary Guard Corps.This comes as Tehran reorganized its military to be more aggressive abroad, Bloomberg reported. A number of top military appointments by Supreme Leader Mojtaba Khamenei mark a shift to an "offensive doctrine," Mohammad Reza Naqdi, a general in the Islamic Revolutionary Guard Corps who advises the force's new commander, told state TV late Tuesday, according to the news agency.Meanwhile, Pakistan's Foreign Ministry has suggested the agreement between the two sides remains relevant despite their refusal to shift positions, CNN reported.The front-month US West Texas Intermediate crude oil contract slipped 0.1% to $83.11 per barrel, and global benchmark North Sea Brent was 0.2% lower at $88.78 per barrel.

Dow JonesNasdaq CompositeS&P 500$CRWV$SMCI$SPCX
Japan

Exchange-Traded Funds Higher, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV rose. Actively traded Invesco QQQ Trust (QQQ) added 1%.US equity indexes traded mixed, with technology among sector leaders, after annual consumer inflation cooled to a four-month low in July while hopes faded for a quick reopening of the Strait of Hormuz.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each fell 0.1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose 1.7%; iShares US Technology ETF (IYW) and iShares Expanded Tech Sector ETF (IGM) edged higher.The State Street SPDR S&P Semiconductor (XSD) gained 2.4%, and iShares Semiconductor (SOXX) rose 3.3%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed fractionally. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.2%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), added 0.1%.CommoditiesCrude oil dipped 0.1%, and the United States Oil Fund (USO) fell 0.6%. Natural gas rose 1.3%, and the United States Natural Gas Fund (UNG) added 1.3%.Gold on Comex rose 0.5%, and the State Street SPDR Gold Shares (GLD) was up 0.8%. Silver added 0.7%, and iShares Silver Trust (SLV) gained 0.8%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) was up 0.5%. The Vanguard Consumer Staples ETF (VDC) rose 0.5%, and iShares Dow Jones US Consumer Goods (IYK) eased less than 0.1%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was down 0.9%. VanEck Retail ETF (RTH) lost 0.6%, and the State Street SPDR S&P Retail (XRT) fell 0.7%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 0.1%, iShares US Healthcare (IYH) added 0.2%, and Vanguard Health Care ETF (VHT) was up 0.2%. IShares Biotechnology ETF (IBB) advanced 0.5%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 0.3%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were also higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 0.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) lost 0.1%, ProShares Ether ETF (EETH) was up 0.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) dipped 0.7%.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH