Stock Market Today: Nasdaq Rises Despite Tumble Among Chip Leaders; Apple Paces Mag 7 Rally
Major stock indexes finished higher on Wednesday following an unexpected drop in wholesale inflation. The Producer Price Index fell 0.3% in June as gasoline costs decreased, providing a boost to market sentiment. The Nasdaq composite climbed 0.6% to close above its 50-day moving average, while the Dow Jones Industrial Average and S&P 500 posted gains of 0.3% and 0.4% respectively.
Technology stocks saw a split performance. While the broader Nasdaq index rose, the Nasdaq-100 faced selling pressure. Semiconductor companies struggled throughout the session. Marvell Technology, Intel, and Lam Research recorded significant losses. Investors shifted attention toward the Magnificent 7, where Apple, Alphabet, Amazon, and Meta Platforms saw notable gains, helping to offset weakness in other tech segments.
Financial stocks emerged as clear winners during the session. BlackRock shares jumped nearly 7% after the firm reported record assets of $15 trillion and strong earnings. Other asset managers like Invesco and Affiliated Managers Group also finished higher. This sector strength provided a reliable counterbalance to the volatility seen in the chip manufacturing group.
Corporate developments drove individual stock movements. PayPal rallied more than 16% on reports that a $53 billion takeover bid from Stripe and Advent is under consideration. Conversely, Dell Technologies fell 12% as investors took profits following recent gains. Aehr Test Systems experienced a sharp 44% increase after beating fiscal fourth-quarter profit expectations and providing a strong revenue forecast for the coming year.
The 10-year Treasury yield dropped four basis points to 4.54% after the inflation report. Crude oil futures moved slightly higher to $79.60 per barrel despite ongoing geopolitical tensions. Market volume on both the New York Stock Exchange and the Nasdaq exceeded Tuesday levels, indicating active participation as investors reacted to the latest economic data and corporate earnings reports.