The Dow Jones Industrial Average rose around 0.2%, while the S&P 500 gained 0.4%. The Nasdaq Composite outperformed, climbing 0.8% in early trade as investors extended the previous session’s rally.
Investor sentiment was lifted after ASML raised its annual sales forecast above Wall Street expectations, citing strong AI-driven demand, and said it plans to expand chipmaking equipment production capacity by 30%, easing concerns over supply chain bottlenecks in the semiconductor industry.
Markets also drew support from a softer-than-expected producer price index (PPI) reading, which followed Tuesday’s cooler consumer inflation report.
Adding to the optimism, New York Federal Reserve President John Williams said there are “encouraging reasons” to believe inflation has peaked and should continue to moderate in the coming quarters, CNBC reported.
Among individual stocks, Tesla gained about 2%, while Amazon, Apple, Microsoft, and Alphabet rose more than 1% each, providing further support to the broader market.
US stock market: S&P 500 futures edge higher, gains capped by West Asia tensions
US stock futures traded higher on Wednesday, July 15, supported by strength in semiconductor stocks after Dutch chipmaking equipment maker ASML raised its annual sales forecast, reinforcing optimism around artificial intelligence-driven demand.
However, gains remained limited as renewed US military strikes on Iran kept geopolitical tensions in focus.
Futures tied to the S&P 500 rose about 0.1%, while Nasdaq-100 futures gained 0.4%. Dow Jones Industrial Average futures hovered around the flatline as investors looked to extend the previous session’s gains.
Chip stocks led the premarket advance after ASML increased its sales outlook for the second time this year and said it plans to expand chipmaking equipment production capacity by 30%, easing concerns over supply-chain bottlenecks. The VanEck Semiconductor ETF climbed more than 1%, with ASML rising around 3%, while Intel and Lam Research gained more than 2% each.
Investor sentiment, however, remained cautious after the US Central Command (CENTCOM) said American forces carried out additional strikes against Iran. According to CENTCOM, the attacks were aimed at degrading Iranian military capabilities used to target commercial shipping in the Strait of Hormuz.
Oil prices moved higher following the development, with West Texas Intermediate (WTI) crude futures rising 0.6% to trade above $79 per barrel, while Brent crude gained 0.7% to trade above $85 per barrel.
