All three major US stock indexes ended higher, with the S&P 500 index reaching a new all-time high. By the close of trading, the Dow Jones Industrial Average stood at 53,839.99 points, up 0.13%; the S&P 500 closed at 7,798.99 points, a gain of 0.65%; and the Nasdaq Composite Index settled at 26,803.03 points, rising 0.81%.
Most large-cap technology stocks advanced, with the Vaneck US Tech Giants Index climbing 0.82%. Tesla surged over 3.5%, Meta (formerly Facebook) rose more than 2.5%, Apple gained 1%, Microsoft added 0.90%, Alphabet (Google) increased 0.82%, Nvidia edged up 0.54%, while Amazon fell 0.80%. Energy stocks mostly declined, with Exxon Mobil dropping 0.68%, Chevron rising 0.56%, ConocoPhillips falling over 2%, Schlumberger losing more than 1%, and Occidental Petroleum sliding over 1%.
Chip stocks were broadly higher, with the Philadelphia Semiconductor Index advancing 0.46%. Intel jumped 3.58%, Lam Research gained 3.34%, ARM rose 2.49%, while Applied Materials dropped 2.48%. Memory stocks were notably strong, with SanDisk soaring 13.67%, Western Digital climbing 7.31%, SK Hynix surging 7.29%, Seagate Technology advancing 4.91%, Micron Technology rising 4.23%, and the Roundhill Memory ETF (DRAM) gaining 3.89%.
Most popular Chinese concept stocks declined. JD.com fell 7.31%, Pinduoduo dropped 5.46%, Alibaba lost 2.44%, Tal Education (Good Future) slid 2.27%, New Oriental Education declined 1.89%, and Li Auto fell 1.6%. In contrast, GDS Holdings (Wan Guo Data) increased 6.2%, and Tencent Music Entertainment rose 2.36%.
In commodities, oil prices declined for the first time after six consecutive days of gains. Light crude oil futures for September delivery on the New York Mercantile Exchange fell $2.02 to settle at $81.25 per barrel, a decline of 2.43%. Brent crude oil futures for October delivery on the London ICE Futures Exchange dropped $1.91 to close at $87.07 per barrel, down 2.15%. In precious metals, according to Wind data, spot gold closed at $4,350.02 per ounce, down 1.32%, and spot silver settled at $64.472 per ounce, a decrease of 1.26%. In futures markets, COMEX gold futures fell 1.35% to $4,407.10 per ounce, and COMEX silver futures declined 1.70% to $64.58 per ounce.
On the news front, the US Bureau of Labor Statistics reported that the July Producer Price Index (PPI) rose 4.7% year-over-year, below the market expectation of 4.9% and significantly lower than June's 5.5% increase. Excluding volatile food and energy categories, the core PPI rose 4.2% year-over-year, in line with market expectations. This report further dampened market expectations for the Federal Reserve to tighten monetary policy. The CME FedWatch Tool indicated a 65.7% probability that the central bank would hold interest rates steady, up from around 60% the previous day.
Divergence within the Federal Reserve regarding the next steps for monetary policy is becoming more public. Cleveland Fed President Loretta Mester reiterated her hawkish stance, directly stating, "I think we need to act now," and warned of financial stability risks including leveraged Treasury positions and the AI bubble. In contrast, Richmond Fed President Thomas Barkin supported maintaining current rates, arguing that inflation is primarily driven by temporary shocks, but cautioned that AI investment and supply chains could create persistent price pressures.
Arun Sundaram of CFRA believes that Thursday's softer PPI data, combined with last week's weaker-than-expected employment report, will provide Fed Chair Kevin Warsh with more leeway, potentially enough to support holding rates steady at this meeting. "But the Fed's decision is far from a done deal," he said. "Investors still have multiple potential variables to digest."
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