[BRIEFING.COM] Stocks advanced on Thursday as a softer-than-expected July PPI report further eased Fed tightening concerns, while strength across mega-cap technology helped lift the S&P 500 to fresh record territory. The S&P 500 (+0.7%) crossed 7,800 for the first time and notched record intraday and closing highs, while the Nasdaq Composite (+0.8%) outperformed and the DJIA (+0.1%) eked out a modest gain.

July PPI was unchanged (Briefing.com consensus: 0.1%), while core PPI increased 0.2% (Briefing.com consensus: 0.3%), leaving both measures slightly below expectations despite modest upward revisions to the prior month's readings. Coming on the heels of Wednesday's in-line CPI report, the data reinforced the market's increasingly favorable view of the policy outlook. The shift was evident in fed funds futures, with the probability of a 25-basis-point rate hike at the September FOMC meeting now at 34.6%, according to the CME FedWatch tool. That compares with 40.6% just before this morning's PPI release and 55.0% a week ago.

The friendlier rate backdrop helped fuel another strong showing from growth stocks. The information technology sector (+1.0%) finished among the leaders, with memory stocks driving much of the early strength following positive takeaways from Sandisk (SNDK 1528.11, +183.82, +13.67%) investor day. Sandisk and Western Digital (WDC 487.29, +33.19, +7.31%) were among the top-performing S&P 500 components, while SK hynix Inc. (SKHY 165.65, +11.24, +7.28%) extended its August rebound and moved back toward its $170 July 10 IPO opening price after falling to post-IPO lows late last month.

Strength across the semiconductor group faded considerably during the afternoon, however, leaving the PHLX Semiconductor Index up just 0.5% after gaining more than 2.0% earlier in the session. Coherent (COHR 327.35, -28.29, -7.95%) was a notable laggard within the group following its earnings report. More broadly, the semiconductor retreat coincided with a sharp pickup in software stocks, suggesting some rotation within technology during the afternoon. The iShares Expanded Tech-Software ETF (IGV) jumped 3.1%, helped by an impressive surge in Workday (WDAY 206.45, +31.16, +17.78%) after Reuters reported that Silver Lake is in talks to acquire the company.

Mega-cap stocks also provided meaningful support after yesterday's weaker showing. The communication services sector (+1.6%) led all S&P 500 sectors as Meta Platforms (META 594.97, +16.12, +2.78%) ranked among the strongest "Magnificent Seven" names. Netflix (NFLX 78.24, +4.03, +5.43%) also advanced sharply following reports that Bill Ackman's Pershing Square fund established a new stake.

The real estate sector (+1.3%) was another standout as Treasury yields moved lower following the inflation data.

Oil provided another source of support, although the path lower was somewhat choppy. Crude moved around considerably without a meaningful geopolitical headline, contributing to the major averages' retreat from their opening highs before stocks recovered through the afternoon. WTI crude ultimately settled $2.20 lower (-2.6%) at $81.06 per barrel, while the energy sector (-0.1%) finished only modestly lower. 

The materials sector (-0.7%) was the day's weakest performer amid lower precious metals prices and weakness across fertilizer names.

Ultimately, Thursday's advance capped another constructive response to this week's inflation data, with softer producer prices further reducing expectations for additional Fed tightening and helping the S&P 500 establish fresh record highs. The afternoon rotation from semiconductors toward software kept technology firmly supportive even as the early chip rally faded, while lower Treasury yields and oil prices provided a favorable backdrop elsewhere in the market.

U.S. Treasuries took some solace in a July PPI report that reinforced the belief coming out of the July CPI report that the Fed won't be raising rates at its September FOMC meeting. The 2-year note yield settled down six basis points to 4.14%, and the 10-year note yield settled down four basis points to 4.64%. 

• Russell 2000: +23% YTD
• S&P Mid Cap 400: +18.4% YTD
• Nasdaq Composite:  +15.3% YTD
• S&P 500: +13.9% YTD
• DJIA: +12.0% YTD

Reviewing today's data:

• July PPI 0.0% (Briefing.com consensus 0.1%); Prior was revised to -0.1% from -0.3%, July Core PPI 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.2%
  • The key takeaway from the report is that, like the CPI, it was devoid of "new" inflation-baked surprises. Headline and core readings trended in the right direction of disinflation, which is an appeasement for today's trading dynamic, but of course the inflation rates themselves remain on the high side and need to come down much more to appease inflation hawks.
• Weekly Initial Claims 209K (Briefing.com consensus 205K); Prior was revised to 200K from 199K, Weekly Continuing Claims 1.777 mln; Prior was revised to 1.799 mln from 1.801 mln
  • The key takeaway from the report is the 4-week moving average for initial claims running below 200,000 (currently 199,000), which is an historically low number consistent with a labor market that is light on layoff activity.

[BRIEFING.COM] The S&P 500 (+0.7%) and Nasdaq Composite (+1.0%) are back near their session highs just before this close, putting the S&P 500 on track for a record closing high to go along with its record intraday high. The DJIA (+0.1%) remains near the midpoint of its range today as Cisco (CSCO 112.42, -11.46, -9.25%) continues to pressure the index after its earnings release.

More tech earnings are on tap after the close, with Applied Materials (AMAT 546.05, -2.10, -0.38%) heading into Q3 (Jul) with expectations elevated following another strong report in May and recent peer results that have reinforced strength in AI-driven wafer fab equipment demand. Applied Materials' prior guidance already called for another sharp sequential increase in revenue, while Lam Research (LRCX 338.23, +12.12, +3.72%) and KLA Corporation (KLAC 210.42, +2.17, +1.04%) have since pointed to continued strength in the broader equipment cycle into 2H26 and 2027. Despite pulling back sharply from its June highs, shares remain up more than 100% YTD, keeping the bar high for Q4 guidance and the broader demand outlook.

[BRIEFING.COM] The S&P 500 (+0.7%), Nasdaq Composite (+0.9%), and DJIA (flat) remain little changed from previous levels as the market enters the final hour of the session.

Shares of Workday (WDAY 211.31, +36.02, +20.55%) have spiked recently after Reuters reported that Silver Lake is in talks to buy the company. The monster gain has pushed up the standing of the iShares Expanded Tech-Software ETF (+2.7%), while the information technology sector (+1.2%) remains little changed from previous levels.

[BRIEFING.COM] The S&P 500 (+0.56%) is in second place on Thursday afternoon, up about 44 points.

Briefly, S&P 500 constituents FedEx Freight (FDXF 149.11, +7.87, +5.57%), Intel (INTC 105.56, +4.61, +4.57%), and Robinhood (HOOD 98.47, +3.56, +3.75%) pepper the top of the standings despite a dearth of corporate news.

Meanwhile, Mosaic (MOS 21.58, -1.02, -4.51%) is solidly lower, mirroring losses in the broader materials sector.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.74%) is up about 197 points this afternoon, in first place among the major averages.

Gold futures settled $47.10 lower (-1.1%) at $4,420.40/oz, as traders take profits following a roughly 4% four-session rally, with prices also facing resistance around the $4,500 level. A rebound in the dollar and easing safe-haven demand are adding pressure, although softer U.S. inflation and expectations for Fed rate cuts continue to support the broader gold outlook.

Meanwhile, the U.S. Dollar Index is down less than -0.1% to $99.96.

[BRIEFING.COM] The Dow Jones Industrial Average (-0.03%) is in last place among the major averages, down about 16 points.

A look inside the DJIA shows that Cisco (CSCO 112.84, -11.04, -8.91%), 3M (MMM), and McDonald's (MCD 272.81, -2.89, -1.05%) are underperforming.

Meanwhile, Nike (NKE 41.04, +0.53, +1.31%) is today's top gain getter.

The DJIA is down about -0.52% week-to-date.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (-0.1%) remain mostly higher shortly after midday, though stocks have given back some of their early strength that saw the S&P 500 notch a fresh record intraday high and cross the 7,800 mark for the first time.

Stocks enjoyed an opening rally as another encouraging inflation report and lower oil prices provided a favorable backdrop. July PPI was unchanged (Briefing.com consensus: 0.1%), while core PPI increased 0.2% (Briefing.com consensus: 0.3%), leaving both measures slightly below expectations despite modest upward revisions to the prior month's readings. Coming on the heels of yesterday's in-line CPI report, the softer producer-price data further reduced expectations for additional Fed tightening. The probability of a 25-basis-point rate hike in September has fallen to 34.4% from 55.0% a week ago, according to the CME FedWatch tool.

The friendlier policy outlook saw stocks open broadly higher, with solid leadership from mega-cap and technology names. The information technology sector (+1.0%) is among the market's leaders, supported by a 2.0% surge in the PHLX Semiconductor Index. Memory names in particular are rallying following positive developments out of Sandisk's (SNDK 1551.82, +207.53, +15.44%) investor day.

Super Micro Computer (SMCI 39.71, +2.10, +5.58%) continues to rally after yesterday's post-earnings surge, while weakness in Cisco (CSCO 112.46, -11.42, -9.22%) following a beat-and-raise earnings report of its own weighs heavily on the DJIA.

Mega-cap technology stocks elsewhere are also outperforming after a weaker showing yesterday. Meta Platforms (META 588.38, +9.53, +1.65%) and Tesla (TSLA 336.02, +8.51, +2.60%) are standouts, and the Vanguard Mega Cap Growth ETF is up 0.9%. While the communication services sector (+1.1%) remains firmly higher, with Netflix (NFLX 77.22, +3.01, +4.06%) contributing a solid gain, the consumer discretionary sector (+0.1%) has given back the bulk of its early advance as crude oil has narrowed its losses for the day.

Crude oil is currently down $1.35 (-1.6%) to $81.92 per barrel after moving toward the $80 per barrel mark earlier in the session, though the early retreat was without a headline catalyst. The energy sector (-0.3%) is a laggard, while the materials (-0.6%) and industrials (-0.3%) sectors also trade lower.

Outside the S&P 500, the Russell 2000 (+0.1%) and S&P MidCap 400 (+0.1%) have also surrendered the bulk of their early strength.

Still, the S&P 500 and Nasdaq remain solidly higher as the combination of softer inflation data and lower oil prices keeps the broader backdrop supportive. The pullback from the opening highs has been orderly so far, with strength in mega-cap technology and semiconductor stocks helping the major averages retain much of their gains.

Reviewing today's data:

• July PPI 0.0% (Briefing.com consensus 0.1%); Prior was revised to -0.1% from -0.3%, July Core PPI 0.2% (Briefing.com consensus 0.3%); Prior was revised to 0.4% from 0.2%
  • The key takeaway from the report is that, like the CPI, it was devoid of "new" inflation-baked surprises. Headline and core readings trended in the right direction of disinflation, which is an appeasement for today's trading dynamic, but of course the inflation rates themselves remain on the high side and need to come down much more to appease inflation hawks.
• Weekly Initial Claims 209K (Briefing.com consensus 205K); Prior was revised to 200K from 199K, Weekly Continuing Claims 1.777 mln; Prior was revised to 1.799 mln from 1.801 mln
  • The key takeaway from the report is the 4-week moving average for initial claims running below 200,000 (currently 199,000), which is an historically low number consistent with a labor market that is light on layoff activity.

[BRIEFING.COM] The major averages remain mostly higher, now settling into a relatively stable trading range.

The consumer staples sector (+0.6%) is now among the best-performing S&P 500 sectors, benefiting from dollar weakness as easing rate-hike expectations following the July CPI and PPI reports provide a tailwind for multinational staples companies.

Keurig Dr Pepper (KDP 30.98, +1.42, +4.82%) is a top performer, benefiting from an upgrade to Buy from Hold at HSBC Securities and a target price of $40.

[BRIEFING.COM] The S&P 500 (+0.4%), Nasdaq Composite (+0.6%), and DJIA (-0.2%) continue to move off their earlier session highs.

Tech continues to be the main source of leadership, with the information technology sector (+0.8%), PHLX Semiconductor Index (+1.5%), and iShares U.S. Software ETF (+0.4%) all giving up a considerable portion of their earlier strength.

Meanwhile, crude oil is back above the $82.50 per barrel mark after challenging the $80 per barrel mark. That has weighed most heavily on the consumer discretionary sector, which now wrestles with its flat line after a solid early gain.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (-0.2%) are mostly higher just before midday as another tame inflation reading and lower oil prices set the stage for broad strength today, with the S&P 500 capturing a fresh all-time intraday high. 

Both total (0.0%; Briefing.com consensus: 0.1%) and core (0.2%; Briefing.com consensus: 0.3%) PPI came in slightly softer than expected for July, though there was a modest upward revision to the previous month's level. Combined with yesterday's in-line CPI report, the data have further eased concerns about additional Fed tightening. The probability of a 25-basis-point rate hike at the September FOMC meeting has fallen to 34.4% from 55.0% a week ago, providing a supportive policy backdrop for stocks.

Participation has been relatively broad as a result, with mega-cap and semiconductor names leading the S&P 500 to fresh record highs. However, the DJIA's weakness largely stems from Cisco' (CSCO 113.23, -10.65, -8.60%) sharp post-earnings retreat.

Lower oil prices have provided an additional tailwind for stocks, though the early retreat came without a headline catalyst, and oil has since narrowed its loss for the day. WTI crude is currently down $0.89 (-1.1%) to $82.35 per barrel.

[BRIEFING.COM] The major averages remain higher, though the DJIA (+0.1%) is fighting to stay in positive territory as Cisco (CSCO 114.72, -9.16, -7.39%) continues to move lower after its earnings.

Elsewhere in the information technology sector (+1.2%), memory names are outperforming, with the Roundhill Memory ETF up 3.6%. Western Digital (WDC 490.62, +36.52, +8.04%) is one of the best-performing S&P 500 names today, while Sandisk (SNDK 1429.15, +84.86, +6.31%) also trades higher after laying out its FY28-FY30 model, targeting mid-to-high-teens revenue growth and a ~50% free cash flow margin.

[BRIEFING.COM] The S&P 500 (+0.8%) continues to chart all-time highs this morning, moving past the 7,800 mark for the first time, while the Nasdaq Composite (+1.0%) and DJIA (+0.4%) also add to their early gains.

While strength is decidedly broad this morning, there are still a few notable post-earnings retreats in the mix.

Cisco (CSCO 115.25, -8.63, -6.97%) is trading lower despite reporting an impressive Q4 (Jul) earnings report last night, including a larger EPS upside than in recent quarters and huge upside guidance for both Q1 (Oct) and FY27. Revenue rose 17.6% year-over-year to $17.25 billion, marking Cisco's strongest yr/yr growth in any quarter in the past five years and topping expectations. The biggest positive was the company's outlook, which called for substantial growth in FY27 as Cisco benefits from what it describes as the early stages of a networking supercycle driven by accelerating agentic AI adoption. Despite the strength of the results and guidance, shares are lower, likely reflecting elevated expectations, questions around the conversion of AI orders into revenue, and pressure on gross margins.

Meanwhile, Tapestry (TPR 129.38, -24.36, -15.84%) is plunging lower despite a strong Q4 as investors focus on an FY27 outlook that largely maintains the company's existing long-term growth algorithm rather than delivering the upside implied by elevated expectations. Management guided FY27 EPS to $7.80-$7.90 with mid-single-digit revenue growth and roughly 50 bps of operating-margin expansion, while Q1 EPS of approximately $1.55 and continued low-teens Coach growth suggest the selloff reflects an expectation reset more than an abrupt deterioration in current demand.

[BRIEFING.COM] Stocks opened higher, with the tech-heavy Nasdaq Composite (+0.9%) once again leading the advance while the S&P 500 (+0.7%) is charting new all-time highs. The DJIA (+0.4%) holds a more modest gain amid some weakness in cyclical sectors this morning.

Tech is off to another stolid start as the information technology sector (+1.1%) paces the early gains. Software stocks are rebounding from a weaker showing yesterday, semiconductors remain firm, and hardware names such as Super Micro Computer (SMCI 39.81, +2.20, +5.85%) and Hewlett Packard Enterprise (HPE 61.31, +2.52, +4.29%) are among the best-performing S&P 500 components this morning.

Mega-cap tech stocks outside of the information technology sector are putting together a nice rebound after poor performances yesterday. Solid gains in Meta Platforms (META 588.75, +9.90, +1.71%) and Tesla (TSLA 332.28, +4.77, +1.46%) push the communication services (+1.0%) and consumer discretionary (+0.7%) sectors higher, while the Vanguard Mega Cap Growth ETF rises 1.0%.

Strength is relatively broad elsewhere, with a total of eight S&P 500 sectors trading higher. A sharp retreat in crude oil (WTI crude is down $2.75 (-3.3%) to $80.51 per barrel) is adding to the constructive backdrop this morning, though the energy sector (-1.1%) lags as a result.

The stock market remains on track for a higher opening following another relatively benign inflation reading and lower oil prices this morning.

Total PPI was unchanged month-over-month in July (Briefing.com consensus: 0.1%) following an upwardly revised 0.1% decline (from -0.3%) in June. Core PPI, which excludes food and energy, increased 0.2% month-over-month (Briefing.com consensus: 0.3%) following an upwardly revised 0.4% increase (from 0.2%) in June.

Total PPI was up 4.7% year-over-year, down from 5.5% in June. Core PPI was up 4.2% year-over-year versus 4.7% in June.

The key takeaway from the report is that, like the CPI, it was devoid of "new" inflation-baked surprises. Headline and core readings trended in the right direction of disinflation, which is an appeasement for today's trading dynamic, but of course the inflation rates themselves remain on the high side and need to come down much more to appease inflation hawks.

Separately, initial jobless claims for the week ending August 8 increased by 9,000 to 209,000 (Briefing.com consensus: 205,000). Continuing jobless claims for the week ending August 1 decreased by 22,000 to 1.777 million.

The key takeaway from the report is the 4-week moving average for initial claims running below 200,000 (currently 199,000), which is an historically low number consistent with a labor market that is light on layoff activity.

The S&P 500 futures currently trade 23 points above fair value. 

Equity indices in the Asia-Pacific region were mixed on Thursday, with South Korea's Kospi Index (+3.6%) the winning standout once again, bolstered by its semiconductor components. Thursday's gain left the Kospi up more than 20% from its closing low in July (a span of just 10 trading sessions). Japan's Nikkei (+1.2%) also had another winning session, aided by some market-friendly PPI data. Nevertheless, market pricing continues to suggest a BOJ rate hike could happen in either September or October. The Q2 policy report from the PBOC, meanwhile, acknowledged continuing with a "moderately loose" monetary policy.

In economic data:

• Japan's July PPI 0.1% m/m (expected 0.6%; prior 0.5%) and 7.2% yr/yr (expected 7.4%; prior 7.3%)
• India's July Trade Balance -INR31.98B (expected -INR30.20B; prior -INR30.43B)
• New Zealand's Q3 Inflation Expectations 2.3% qtr/qtr (prior 2.5%)

---Equity Markets---

• Japan's Nikkei: +1.2%
• Hong Kong's Hang Seng: -0.2%
• China's Shanghai Composite: -0.5%
• India's Sensex: +0.1%
• South Korea's Kospi: +3.6%
• Australia's All Ordinaries: -0.2%

Major European indices are mostly higher, sporting modest gains in a move that has drawn support from sliding oil prices.The Norges Bank left its key policy rate unchanged at 4.25% but suggested it may need to raise rates again. Corporate news hasn't been much of a market mover, taking a backseat to economic news that included a data dump from the U.K. that featured stronger-than-expected GDP for June and a larger-than-expected trade deficit for June.

In economic data:

• Eurozone's June Industrial Production 0.0% m/m (expected -0.1%; prior 0.3%) and 0.1% yr/yr (expected -0.8%; prior -0.1%)
• U.K.'s June GDP 0.3% m/m (expected 0.0%; prior 0.0%) and 1.1% yr/yr (expected 0.8%; prior 1.2%), Q2 GDP 0.4% qtr/qtr (expected 0.4%; prior 0.6%) and 1.2% yr/yr (expected 1.1%; prior 0.9%); June Industrial Production -0.2% m/m (expected 0.1%; prior -0.7%) and -0.2% yr/yr (expected 0.2%; prior 1.0%); Business Investment 1.7% qtr/qtr (expected -0.3%' prior 0.9%); June Trade Balance -GBP23.01B (expected -GBP20.60B; prior -GBP21.08B); June Construction Output -0.1% m/m (expected -0.3%; prior -0.8%) and -2.3% yr/yr (expected -2.4%; prior -2.0%)
• Spain's July CPI 0.3% m/m (expected 0.2%; prior 0.6%) and 3.6% yr/yr (expected 3.5%; prior 3.2%)
• Switzerland's July PPI -0.1% m/m (expected -0.2%; prior -0.3%) and -2.1% yr/yr (prior -2.1%)

---Equity Markets---

• STOXX Europe 600: +0.1%
• Germany's DAX: +0.3%
• U.K.'s FTSE 100: -0.4%
• France's CAC 40: unch
• Italy's FTSE MIB: +0.4%
• Spain's IBEX 35: +0.5%

The S&P 500 futures currently trade points above fair value.

Just released, Total PPI was flat month-over-month in July (Briefing.com consensus: 0.1%) following an upwardly revised 0.1% decrease (from -0.3%) in June.

Core PPI, which excludes food and energy, was up 0.2% month-over-month (Briefing.com consensus: 0.3%) following an upwardly revised 0.4% increase (from 0.2%) in June.

Initial jobless claims for the week ending August 8 increased by ,9000 to 209,000 (Briefing.com consensus: 205,000) from an upwardly revised prior level of 200,000 (from 199,000).

Continuing jobless claims for the week ending August 1 decreased by 22,000 to 1.777 million from a downwardly revised previous level of 1.799 million (from 1.801 million).

Equity futures point to a modestly higher open as investors await more inflation data this morning against a quiet corporate news backdrop.

Stocks finished mostly higher yesterday after the July Consumer Price Index came in-line with expectations, keeping the odds of a rate hike or hold at the September FOMC meeting fairly even and setting the stage for a quiet day of trading. The market will receive the July PPI (Briefing.com consensus 0.1%) and Core PPI (Briefing.com consensus 0.3%) readings at 8:30 a.m. ET alongside weekly initial jobless claims data (Briefing.com 205,000).

Elsewhere, crude oil is moving lower this morning despite a lack of headlines around the state of U.S.-Iran negotiations. WTI crude is currently down $1.73 (-2.1%) to $81.55 per barrel.

In corporate news:

• Anthropic investors expect a $2 trillion IPO valuation, according to Financial Times.
• Coherent (COHR 332.41, -23.23, -6.5%) beat EPS and revenue expectations.
• Cisco (CSCO 116.50, -7.38, -6.0%) beat EPS expectations by $0.05, beat revenue expectations, guided Q1 EPS and revenues above consensus, and guided FY27 EPS and revenues above consensus.

Reviewing overnight developments:

Equity indices in the Asia-Pacific region were mixed on Thursday, with South Korea's Kospi Index (+3.6%) the winning standout once again, bolstered by its semiconductor components. Japan's Nikkei: +1.2%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: -0.5%, India's Sensex: +0.1%, South Korea's Kospi: +3.6%, Australia's All Ordinaries: -0.2%.

In news:

• Thursday's gain left the Kospi up more than 20% from its closing low in July (a span of just 10 trading sessions).
• Japan's Nikkei (+1.2%) also had another winning session, aided by some market-friendly PPI data. Nevertheless, market pricing continues to suggest a BOJ rate hike could happen in either September or October.
• The Q2 policy report from the PBOC, meanwhile, acknowledged continuing with a "moderately loose" monetary policy.

In economic data:

• Japan's July PPI 0.1% m/m (expected 0.6%; prior 0.5%) and 7.2% yr/yr (expected 7.4%; prior 7.3%)
• India's July Trade Balance -INR31.98B (expected -INR30.20B; prior -INR30.43B)
• New Zealand's Q3 Inflation Expectations 2.3% qtr/qtr (prior 2.5%)

Major European indices are mostly higher, sporting modest gains in a move that has drawn support from sliding oil prices. STOXX Europe 600: +0.2%, Germany's DAX: +0.3%, U.K.'s FTSE 100: -0.3%, France's CAC 40: +0.1%, Italy's FTSE MIB: +0.4%, Spain's IBEX 35: +0.6%.

In news:

• The Norges Bank left its key policy rate unchanged at 4.25% but suggested it may need to raise rates again.
• Corporate news hasn't been much of a market mover, taking a backseat to economic news that included a data dump from the U.K. that featured stronger-than-expected GDP for June and a larger-than-expected trade deficit for June.

In economic data:

• Eurozone's June Industrial Production 0.0% m/m (expected -0.1%; prior 0.3%) and 0.1% yr/yr (expected -0.8%; prior -0.1%)
• U.K.'s June GDP 0.3% m/m (expected 0.0%; prior 0.0%) and 1.1% yr/yr (expected 0.8%; prior 1.2%), Q2 GDP 0.4% qtr/qtr (expected 0.4%; prior 0.6%) and 1.2% yr/yr (expected 1.1%; prior 0.9%); June Industrial Production -0.2% m/m (expected 0.1%; prior -0.7%) and -0.2% yr/yr (expected 0.2%; prior 1.0%); Business Investment 1.7% qtr/qtr (expected -0.3%' prior 0.9%); June Trade Balance -GBP23.01B (expected -GBP20.60B; prior -GBP21.08B); June Construction Output -0.1% m/m (expected -0.3%; prior -0.8%) and -2.3% yr/yr (expected -2.4%; prior -2.0%)
• Spain's July CPI 0.3% m/m (expected 0.2%; prior 0.6%) and 3.6% yr/yr (expected 3.5%; prior 3.2%)
• Switzerland's July PPI -0.1% m/m (expected -0.2%; prior -0.3%) and -2.1% yr/yr (prior -2.1%)

[BRIEFING.COM] Stocks finished mostly higher on Wednesday, with the S&P 500 (+0.3%) and Nasdaq Composite (+0.5%) posting modest gains while the DJIA ended flat. Trading remained confined to relatively narrow ranges throughout the session as an in-line inflation report cleared the week's biggest macro hurdle without producing a major directional move.

The July Consumer Price Index matched expectations, with headline CPI increasing 0.1% and core CPI rising 0.2%. The lack of an upside surprise helped temper concerns about additional Fed tightening, with the CME FedWatch tool assigning a 60.1% probability to the FOMC leaving rates unchanged in September, up from 51.6% yesterday.

With the highly anticipated report offering little reason to alter the broader market outlook, attention quickly shifted back toward individual stocks and sectors. That was particularly evident in the information technology sector (+1.1%), which led the market as enthusiasm returned to semiconductor and AI-related names. The PHLX Semiconductor Index jumped 2.5%, with strong post-earnings reactions in CoreWeave (CRWV 107.73, +17.41, +19.28%), Super Micro Computer (SMCI 37.55, +5.95, +18.83%), and Lumentum (LITE 932.47, +111.88, +13.63%) reinforcing enthusiasm surrounding continued AI infrastructure spending.

Outside the information technology sector, SpaceX (SPCX 146.22, +12.93, +9.70%) was another momentum standout, surging after introducing Grok 4.6.

The real estate sector (+1.1%) matched information technology for the day's best performance amid some modest easing in Treasury yields.

Participation elsewhere was more mixed, however, with strength in semiconductor and AI-related names contrasting with weakness across several non-semiconductor mega-cap stocks. The consumer discretionary sector (-1.4%) finished at the bottom of the sector standings as Amazon (AMZN 267.28, -4.99, -1.83%) and Tesla (TSLA 327.51, -5.30, -1.59%) moved lower. Large apparel names also faced pressure, while homebuilders and related construction names struggled even as yields eased. The iShares U.S. Home Construction ETF fell 2.3%.

The communication services sector (-0.9%) was another laggard, with Meta Platforms (META 578.85, -20.27, -3.38%) among the weakest "Magnificent Seven" components. Charter Comm (CHTR 150.22, -7.47, -4.74%) also finished sharply lower despite little in the way of company-specific news.

Unlike the previous two sessions, geopolitical developments and oil prices had little influence on today's action. There were few meaningful developments surrounding the U.S.-Iran conflict, and WTI crude oil futures settled just $0.09 higher (+0.1%) at $83.26 per barrel. The energy sector (+0.2%) finished with a modest gain.

Overall, today's relatively uneventful session reflected a market that received some reassurance from the inflation data without a significant shift in the broader outlook. Reduced expectations for a September rate hike and renewed enthusiasm across semiconductor and AI-related stocks provided enough support to keep the S&P 500 and Nasdaq higher, even as mixed participation and weakness across several mega-cap names kept the advance contained.

U.S. Treasuries settled today's session mixed and little changed, surrendering a decent chunk of overnight gains in spite of a CPI report for July that was deemed market-friendly and a solid $42 billion 10-year note auction. The 2-year note yield settled down two basis points to 4.20%, and the 10-year note yield finished unchanged at 4.68%.

• Russell 2000: +22.7% YTD
• S&P Mid Cap 400: +18.0% YTD
• Nasdaq Composite: +14.4% YTD
• S&P 500: +13.2% YTD
• DJIA: +11.9% YTD

Reviewing today's data:

• Total CPI was up 0.1% month-over-month in July (Briefing.com consensus: 0.1%) following a 0.4% decline in June. That left the year-over-year rate at 3.4%, down from 3.5% in June. Core CPI, which excludes food and energy, was up 0.2% month-over-month (Briefing.com consensus: 0.2%) following an unchanged reading for June. On a year-over-year basis, core CPI was up 2.5% versus 2.6% in June.
  
  • The July CPI report, at the least, did not stoke "new" concerns that the Fed will have to raise rates at the September FOMC meeting. That is the key takeaway from the report, and it was embedded in the realization that this report came in as expected.
• The Treasury Department reported a $432.3 billion deficit for July versus a deficit of $291.1 billion for the same period in July 2025. Receipts totaled $334.0 billion, while outlays reached $766.3 billion.
  
  • The key takeaway from the report is that the net interest outlay exceeded the national defense outlay, which is saying something given that the U.S. is at war with Iran.