Major Indexes Close Higher
U.S. stocks advanced on Wednesday as gains in major technology names, a stronger outlook from ASML and cooler wholesale inflation data helped support investor sentiment.
Dow, S&P 500 and Nasdaq Gain Ground
The Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained between 0.3% and 0.4% during the session. The Nasdaq Composite, which is heavily weighted toward technology stocks, advanced 0.6% after also posting gains the previous day.
Apple Hits a Record High
Apple shares climbed to a record high after a report said the iPhone maker had received approval to launch its generative artificial intelligence features in China. The move added momentum to the broader technology rally.
Alphabet Shares Rally
Alphabet also helped lift the market, with shares rising nearly 3% and later trading more than 3% higher. The move in the Google parent company added strength to the Nasdaq and supported the broader tone across Big Tech.
ASML Raises Its Sales Outlook
ASML shares gained about 2% after the chip equipment maker raised its annual sales forecast above Wall Street expectations. The company cited demand linked to artificial intelligence as a key factor behind the improved outlook.
Chip Equipment Capacity Set to Expand
ASML also said it plans to increase production capacity for chipmaking equipment by 30%. The announcement reinforced expectations that AI-related demand will continue to support investment across parts of the semiconductor supply chain.
Semiconductor Stocks Pull Back
Despite ASML’s upbeat forecast, the broader semiconductor sector weakened. Memory chipmakers were among the hardest hit, with Micron Technology and SK Hynix both tumbling more than 7%.
Wholesale Inflation Slows More Than Expected
Investors also reacted positively to the latest Producer Price Index data. The report showed that wholesale inflation slowed faster than economists had expected in June, adding to signs that price pressures may be easing.
PPI Follows Cooler CPI Data
The wholesale inflation report followed softer-than-expected Consumer Price Index data. The CPI reading showed the largest one-month decline in inflation since April 2020, strengthening expectations that inflation pressure is cooling.
Fed Tightening Fears Ease
The weaker inflation figures reduced concerns that the Federal Reserve would need to tighten monetary policy in the near term. That helped support stocks even as investors continued to monitor risks from oil prices and geopolitical tensions.
Oil Prices Remain a Source of Pressure
Rising oil prices continued to weigh on the market backdrop after President Donald Trump said he would intensify attacks on Iran until the country relents. The inflation data helped offset some of that pressure during Wednesday’s session.
A Choppy but Positive Session
Trading was uneven, but the main indexes finished higher as strong moves in Apple, Alphabet and ASML outweighed weakness in parts of the chip sector. Softer inflation data gave investors another reason to stay constructive on equities despite ongoing uncertainty.
