The S&P 500 rose around 0.3% in early trading, while the Dow Jones Industrial Average gained about 0.3%. The tech-heavy Nasdaq Composite was up 0.2%, with gains in major technology stocks helping lift the broader market.
Investors were encouraged by the latest reading on wholesale inflation. The US producer price index (PPI) was unchanged in July from the previous month, below economists’ expectations for a 0.2% increase. Core PPI, which excludes volatile food and energy prices, rose 0.2%, slightly below the 0.3% increase economists had expected.
The data added to signs that inflationary pressures may be moderating, helping ease some concerns over the outlook for US interest rates. Traders are also assessing the latest labour-market data after initial jobless claims rose to 209,000 in the week ended August 8, above expectations of 202,000 and up from a revised 200,000 in the previous week.
Oil prices declined as markets weighed softer demand expectations amid the ongoing US-Iran conflict.
Brent crude futures fell about 2% to $86.98 a barrel, while West Texas Intermediate futures dropped 2% to $81.14 a barrel. Lower energy prices could provide some relief on the inflation front, although geopolitical risks continue to keep crude markets volatile.
Corporate earnings were also in focus, with several AI and technology-related stocks coming under pressure following their results.Cisco Systems shares fell about 9% after the networking equipment maker’s latest quarterly results failed to meet investor expectations. AI-focused companies Cerebras and Coherent also declined, with shares of Cerebras tumbling about 13% and Coherent falling around 3%.
Investors will also assess results from retailers including Tapestry, Dillard’s and Birkenstock Holding for clues on how companies are navigating tariffs and potential refunds.
