U.S. Stock Market: S&P 500 Notches Second Straight Gain as Inflation Data Outweighs Chip Stock Sell-Off

Despite weakness in the technology sector, the S&P 500 index closed higher, buoyed by a series of robust corporate earnings and inflation data that came in softer than anticipated.

The S&P 500 rose 0.4% at the close in New York, marking its second consecutive session of gains.

Data released earlier on Wednesday revealed that the U.S. core Producer Price Index (PPI) for June increased at a slower pace than economists had forecast.

The Nasdaq 100 index fell 0.3%, reversing its opening gains, with declines in Micron Technology and AMD weighing on the broader market.

José Torres, a senior economist at Interactive Brokers, noted, "The overall equity market is performing well, partly benefiting from strong earnings, even as a sell-off in semiconductor stocks is putting pressure on the tech sector."

The latest U.S. producer price figures indicate that the economic impact from the conflict in Iran remains relatively contained, which may afford the Federal Reserve more time before considering interest rate hikes.

New York Federal Reserve President John Williams remarked that while AI-driven demand presents upward pressure on inflation, current interest rates are "in a good place."

Federal Reserve Chair Kevin Warsh stated that price increases stemming from artificial intelligence infrastructure development do not necessarily fuel broader inflation.

On the geopolitical front, the United States conducted additional airstrikes against Iran on Wednesday, with President Trump vowing to intensify bombing until Tehran ceases attacks on vessels in the Strait of Hormuz and agrees to open the vital waterway.

Shares of BlackRock advanced 6.6% after the firm reported assets under management reached $15.3 trillion.

Morgan Stanley gained 0.4% as its equity trading business revenue set another quarterly record, significantly surpassing Wall Street expectations.

At the market close, the S&P 500 was up 0.4% at 7,572.4 points.

The Dow Jones Industrial Average rose 0.3% to 52,658.64 points.

The Nasdaq Composite Index increased 0.6% to 26,269.23 points.

The Nasdaq 100 Index declined 0.3% to 29,502.6 points.

The Russell 2000 Index climbed 0.4% to 2,976.259 points.