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Update: US Equity Indexes Mixed as Soft Wholesale Inflation Boosts Odds for Continuing Fed Policy Pause

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

US equity indexes traded mixed after a weak producer price inflation print lifted bets for a sixth straight monetary policy pause, while declining crude oil prices reflected demand pessimism.

The Nasdaq Composite rose 0.8% to 26,800.4, and the S&P 500 climbed 0.6% to 7,795.6 after midday Thursday. The Dow Jones Industrial Average fell by less than 0.1% to 53,761.2 as a sharp sell-off in Cisco (CSCO) weighed on the equal-weighted index. Real estate, technology and communication services topped the gainers, while materials led decliners.

Cisco slumped 8.5%, one of the worst performers in the Dow, the S&P 500 and the Nasdaq. The tech giant reported flat fiscal Q4 services revenue at $3.79 billion, missing the FactSet-polled consensus of $3.81 billion. On a non-GAAP basis, product gross margin fell to 64.8% from 67.5% a year ago, weighing on total gross margin.

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, amid sliding energy and food prices. Energy prices fell by 3.1% in the month, with 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%, 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 66% on Thursday, from 59% a day ago and 45% a week earlier, according to the CME FedWatch tool.

US Treasury yields fell, with the 10-year yield down 4.7 basis points to 4.65% and the two-year lower by 4.8 basis points to 4.15%.

Among companies with market capitalizations exceeding $200 billion each, nine of the top 10 by returns were in the technology sector after midday Thursday, according to data compiled by Finviz. Of those nine firms, seven were related to the semiconductor industry. Sandisk (SNDK) was the leader of the pack, up 16%. Sandisk said it expects revenue growth in the mid-to-high-teens from fiscal 2028 through fiscal 2030.

The front-month US West Texas Intermediate crude oil contract dropped 1.6% to $81.97 per barrel, and global benchmark North Sea Brent declined 1.4% to $87.76 per barrel as traders weighed a downbeat demand-supply dynamic and a continuing stalemate in the Iran war.

US commercial crude oil inventories increased by a staggering 17.4 million barrels in the week ended Aug. 7, the Energy Information Administration said in its weekly report on Wednesday. On the same day, the International Energy Agency projected global demand to contract by 1.6 million barrels per day this year, steeper than the 1 million b/d drop seen last month.

The Strait of Hormuz is "under Iran's control and management," the recently appointed head of Iran's Basij paramilitary unit said Thursday, a day after US President Donald Trump said the US had "total control" of the waterway, Reuters reported.

Gold futures slid 0.9% to $4,428.7, and silver futures fell 0.9% to $65.10.

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Update: US Equity Indexes Mixed as AI Infrastructure Players Boost Tech, Cooling Inflation Raises Odds of Sixth Fed Policy Pause

(Updates with index/price moves, macroeconomic data and geopolitical news from the first paragraph.)US equity indexes traded mixed as artificial intelligence infrastructure suppliers boosted mega-cap semiconductor shares and a decline in July's inflation rate lifted bets favoring the sixth consecutive Federal Reserve policy pause.The Nasdaq Composite rose 0.5% to 26,588.49, and the S&P 500 climbed 0.3% to 7,748.50 on Wednesday. The Dow Jones Industrial Average slipped by less than 0.1% to 53,770.27. Technology and real estate topped the gainers. Consumer discretionary, materials and communication services were the sole decliners at the close.Super Micro Computer's (SMCI) shares surged 19%, 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 19%, one of Nasdaq's leaders.Sandisk (SNDK) and Kioxia Corp. unveiled a new 9th-generation, high-performance flash memory technology designed to support the growing storage demands of AI infrastructure. Shares of Sandisk jumped 5.8%, one of the biggest gainers on the S&P 500 and the Nasdaq.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. Of those nine firms, a majority were related to the semiconductor industry. SpaceX (SPCX) was the leader of the pack, 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%.On a month-on-month basis, consumer prices rose 0.1% in July following a 0.4% drop the month prior. Core prices rose 0.2% after holding steady in June. Both readings were in line with market projections."Despite the rebound in monthly measures, underlying inflation trends continue to move in the right direction," Thomas Feltmate, senior economist at TD Economics, said in a report. "At 3.4%, headline CPI has put further distance from its four-year high reached in May, while the annual change on core inflation fell back to its pre-Iran conflict rate of growth."The probability of the Federal Reserve extending its policy pause in September jumped to 60% on Wednesday, up from 52% a day ago and 46% a week earlier, according to the Fedwatch tool.US Treasury yields traded mixed, with the 10-year yield up less than a basis point to 4.69%. The two-year yield fell 1.5 basis points to 4.2%.Gold futures rose 0.7% to $4,470.6, and silver futures jumped 0.9% to $65.51.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. Several 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. Trump claimed the US still has control over the strait while Energy Secretary Chris Wright said Middle East oil exports rose above pre-war levels on Sunday, CNN reportedThe front-month US West Texas Intermediate crude oil contract slipped 0.3% to $82.92 per barrel, and global benchmark North Sea Brent was 0.2% lower at $88.65 per barrel as traders weighed conflicting signals from the Middle East.

Dow JonesNasdaq CompositeS&P 500$CRWV$SMCI$SNDK$SPCX
Asia Markets

TSX Closer: Index Closes at Fresh Record High as Financials Gain, Air Canada Surges

The S&P/TSX Composite Index rose for the fourth straight session to close at a new record high on Wednesday, supported by broad-based gains across most sectors and a sharp rise in Air Canada shares.The index closed up 186.22 points, or 0.5%, at 36,662.14, with most sectors closing higher. Financials led gainers, up 1.1%, while Information Technology and energy sectors were up 0.4% each. Base Metals closed down 0.4%.The Battery Metals Index, which includes companies listed on both the TSX and TSX Venture Exchange, jumped 1.4%.In commodities, West Texas Intermediate (WTI) and Brent crude were mixed as stalled US-Iran talks and continued attacks on ships in the Middle East kept concerns about oil supply disruptions in focus.September WTI crude oil contract settled up $0.07, or 0.1%, at $83.27 per barrel, while October Brent oil was last seen down $0.16, or 0.2%, at $88.75 per barrel.Meanwhile, December Comex gold futures gained 0.7%, or $31.40, to $4,472.50 per ounce.In currencies, the US dollar edged higher 0.1% against the Canadian dollar at 1.3943 at last look.Separately, Canada's building permits rebounded sharply in June, with the total value rising C$2.3 billion, or 18.5% month over month, to C$14.9 billion. This more than reversed declines in April and May, Statistics Canada said in its latest report. The rise seen in June was much higher than the 0.8% monthly gain expected in a Bloomberg survey.In the debt market, Canada's latest five-year government bond auction drew solid demand, with C$5 billion sold at an average yield of 3.344% against C$13.9 billion in competitive bids, resulting in a 2.78 times coverage ratio, according to data on the Bank of Canada.Accepted yields ranged from 3.343% to 3.345%, with distributors receiving 51.9% of the bonds and customers 48.1%, according to the BoC's website.Meanwhile, the proposed 50% US tariff on certain Canadian goods, which could take effect next Wednesday, is raising significant concerns among small exporters, according to new research from the Canadian Federation of Independent Business released Wednesday.Two in five surveyed Canadian exporters said their products would be hit by the tariffs, while 77% of affected firms expect revenues to fall if they come into effect. More than a third anticipate a decline of at least 50%.In stocks, Air Canada (AC.TO) shares jumped 12.3% to reach C$30.61 per share, its highest level in more than six years. This rally came after the company reported second-quarter earnings and said its frequent flyer program Aeroplan will receive a C$2.5 billion minority equity investment from funds managed by Blackstone, La Caisse and other Canadian institutions.

S&P/TSX CompositeS&P/TSX Composite$CAD$CXY$USD$AC.TO
Asia Markets

Update: US Equity Indexes Mixed as Easing Inflation Lifts Fed Policy Pause Bets While No End in Sight for Iran War

(Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.)US equity indexes traded mixed as a drop in July's inflation rate to a four-month low increased the odds of another Federal Reserve policy pause while Iran's top military appointments signaled preparations for an offensive in a prolonged war.The Nasdaq Composite rose 0.4% to 26,546.1 and the S&P 500 climbed 0.2% to 7,742.5 after midday Wednesday. The Dow Jones Industrial Average was steady at 53,824.6. Consumer discretionary and communication services led decliners.Super Micro Computer's (SMCI) shares surged past 18%, the top gainer 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 upside despite higher near-term capital expenditures, Oppenheimer said in a note Wednesday. Its shares soared 19%, one of the top performers on the Nasdaq.Sandisk (SNDK) and Kioxia said Wednesday they unveiled a new 9th-generation, high-performance flash memory technology designed to support the growing storage demands of AI infrastructure. Shares of Sandisk jumped 8%, one of the biggest gainers on the S&P 500 and the Nasdaq.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%.On a month-on-month basis, consumer prices rose 0.1% in July following a 0.4% drop the month prior. Core prices rose 0.2% after holding steady in June. Both readings were in line with market projections."Despite the rebound in monthly measures, underlying inflation trends continue to move in the right direction," Thomas Feltmate, senior economist at TD Economics, said in a report. "At 3.4%, headline CPI has put further distance from its four-year high reached in May, while the annual change on core inflation fell back to its pre-Iran conflict rate of growth."The probability of the Federal Reserve extending its policy pause to the sixth meeting in September jumped to 60% on Wednesday, up from 52% a day ago and 46% a week earlier, according to the Fedwatch tool.US Treasury yields fell, with the 10-year yield down 1.4 basis points to 4.67% and the two-year lower by 3.2 basis points to 4.19%.Gold futures rose 0.6% to $4,468.20, and silver futures jumped 1.1% to $65.68.Meanwhile, 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.This comes as Tehran reorganized its military to be more aggressive abroad, Bloomberg reported. A raft of top military appointments by Supreme Leader Mojtaba Khamenei marks 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.President Donald Trump has claimed the US still has control over the strait while Energy Secretary Chris Wright said Middle East oil exports rose above pre-war levels on Sunday, CNN reportedThe front-month US West Texas Intermediate crude oil contract shed 0.4% to $82.86 per barrel, and global benchmark North Sea Brent was 0.5% lower at $88.46 per barrel.

Dow JonesNasdaq CompositeS&P 500$CRWV$SMCI$SNDK