Stock market today: Dow, S&P 500, Nasdaq extend gains as ASML buoys AI trade, earnings roll in
US stock markets climbed today as investors reacted to positive news from the semiconductor industry and cooling inflation figures. The S&P 500 rose 0.3% and the Nasdaq Composite added 0.6% following an optimistic outlook from Dutch chip equipment manufacturer ASML. The company raised its annual sales forecast and confirmed plans to increase production capacity for equipment necessary for AI development, which helped calm recent concerns about chip supply chain limitations.
Economic data released Wednesday provided further support for the markets. The Producer Price Index indicated that wholesale inflation slowed more than analysts predicted in June. This report follows similar trends seen in recent consumer price data and suggests that inflationary pressure is retreating from the peak levels seen earlier this year.
Financial sector activity remained heavy as earnings season continues. BlackRock reported second quarter results that surpassed expectations, pushing assets under management past the 15 trillion dollar mark. Meanwhile, PayPal stock rose significantly on reports of a potential 53 billion dollar acquisition proposal from Stripe and Advent International. These events come as investors monitor ongoing testimony from Federal Reserve officials and global geopolitical developments.
Despite the broader market gains, certain tech sectors experienced volatility. Companies such as Micron Technology and SK Hynix saw share prices fall as the chip sector adjusted after recent gains. This movement highlights a growing divide between different areas of the technology market, with software and semiconductor investments showing reduced correlation compared to historical averages. Market participants continue to track energy prices and developments in the Middle East as these factors introduce additional pressure on global supply chains and inflation outlooks.