Stocks Climb for a Second Straight Day as Producer Prices Cool

U.S. stocks closed higher for a second straight day on Wednesday, July 15, as a softer-than-expected producer price report pushed all three major indexes into the green — even as tech stocks split in opposite directions within the same session.

Where the Indexes Closed

The S&P 500 gained 0.38% to settle at 7,572.40 — now pushing toward a potential all-time high. The Nasdaq Composite added 0.62%, or roughly 162 points, to close at 26,269.23, nearly recovering all of Monday’s 1.5% drop in just two sessions. The Dow Jones Industrial Average rose 0.29%, adding about 150 points to end at 52,658.64.

Why it matters for you: Back-to-back gains after a shaky Monday suggest the market found its footing. The S&P 500 pressing toward record territory is a sign to watch — a confirmed break to new highs would strengthen the case for the broader uptrend.

Producer Prices Came In Cooler Than Expected

A day after the Consumer Price Index printed below expectations, Wednesday brought a similar result from the Producer Price Index (PPI). Headline PPI fell 0.3% for the month and rose 5.5% year-over-year — both better than forecasts of flat monthly and 6.2% annually. That’s two softer-than-expected inflation readings in a row.

One caveat: part of the recent price moderation may be tied to hopes that a conflict involving Iran could be easing, which would reduce energy cost pressure. Whether the inflation cooldown sticks is something the next few weeks of data will have to answer.

Why it matters for you: Slowing producer prices can reduce cost pressure on businesses, which eventually flows through to consumers. Sustained improvement on inflation could also give the Federal Reserve more flexibility on interest rates — affecting mortgages, savings yields, and borrowing costs.

Apple Jumped 4%; Chip Stocks Pulled Back

Within the Nasdaq, the session told two stories. Six of the seven largest U.S. tech companies moved higher. Apple led with a 4% gain after Chinese regulators approved its AI features for iPhone — significant given how large that market is for the company. Alphabet added 3.2%, Meta gained 3.1%, and Amazon rose 3%.

Semiconductor stocks moved lower despite a strong quarterly report from chip equipment maker ASML, which beat estimates and raised its guidance. Memory and chip names, which had been among the market’s recent leaders, gave back ground on the day.

Why it matters for you: Money didn’t leave tech — it rotated within it, shifting from chips and memory into software and mega-cap platforms. Chip stocks are worth watching to see whether this pullback is a brief pause or the start of something broader.

Bank Earnings Keep Beating Expectations

Financial sector earnings continued to exceed forecasts. Morgan Stanley beat analyst estimates by nearly 20% and BlackRock topped expectations by about 10%, with its stock rising 6.6% on the day. Several banks that reported Tuesday — including Wells Fargo (+2.6%), Bank of America (+1.6%), JPMorgan (+1.2%), Citigroup (+1.2%), and Goldman Sachs (+1.1%) — all moved higher on Wednesday as investors continued to respond positively.

Why it matters for you: When major banks beat broadly, it signals that consumer spending, loan demand, and business activity are holding up. A strong early start to bank earnings is generally a healthy sign for the broader reporting season ahead.

What to Watch

• Taiwan Semiconductor (TSM) earnings — Thursday pre-market; a key signal for global chip demand and AI infrastructure spending
• UnitedHealth (UNH) earnings — Thursday; the largest U.S. health insurer and a major Dow component
• Netflix (NFLX) earnings — Thursday; a read on consumer subscription spending
• Retail sales data — Thursday; measures actual consumer spending at stores
• Weekly jobless claims — Thursday; a current snapshot of the labor market

Bottom Line

Wednesday’s gains were fueled by back-to-back cooler inflation readings and continued strength from bank earnings — a combination that kept buyers in control. The S&P 500 is pressing toward record highs while investor attention shifts within tech from chips toward software and large-cap platforms. Thursday brings a heavy slate of earnings and economic data that will test whether this momentum holds.

This article is for general information and education only. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Markets carry risk – do your own research or consult a licensed advisor before investing. MoneyPilotAI may earn affiliate commissions from tools we mention; see our affiliate disclosure.