The Dow Jones recovered from a mid-day drop during which the index briefly slipped into the red, to end 150 points higher. The S&P 500 and the Nasdaq Composite also recovered from their respective lows to end with gains of 0.4% and 0.6% respectively. The Nasdaq 100 index, which houses most of these chip names, fell 0.3%.
Barring Nvidia, which ended above the flat line on Wednesday, shares of AMD, Micron, Intel, Sandisk, Western Digital and the ADRs of South Korea’s SK Hynix, fell between 3.5% to 9% in mid-week trading.
For the second day running, inflation data turned out to be better-than-expectations due to the fall in energy prices. Producer Price Index for the month of June came in a negative 0.3% compared to 0% month-on-month estimates. On a year-on-year basis, the PPI figure stood at 5.5%, while the May monthly reading was revised lower to 0.6% from 1.1% earlier.
The softer inflation print led to bond wagers dialing back on rate hike expectations anytime soon, thereby boosting market sentiment.
In major results, Morgan Stanley beat street expectations, similar to its other large banking peers, with its equity trading revenue registering a 69% year-on-year growth.
Experts though have warned that if the Strait of Hormuz does not open soon, it will yet again lead to a rise in oil prices and thereby pressure inflation figures yet again.
Crude oil prices continued to hover around the $85 a barrel mark even as the US launched fresh strikes on Iran and the latter threatening to cut off alternative fuel export routes as well if the attacks do not stop.
On the macro front, the street will look forward to the retail sales data and the initial jobless claims figures later today, while companies such as Netflix, Abbott Laboratories, TSMC, UnitedHealth, GE Aerospace, among others will be reporting their results for the quarter during the course of the day.
