Wall Street Rises as Slowing PPI Boosts Rate Freeze Hopes

Wall Street.

The three major U.S. stock indices closed higher across the board.

The Nasdaq rose by the 0.8% range, and the S&P 500 broke its all-time high.

By sector, communication services, tech stocks, and real estate all recorded gains in the 1% range.

New York stocks rallied together, bolstered by wholesale inflation figures that were more stable than expected.

Market attention was focused on the July Producer Price Index (PPI).

According to the U.S. Department of Labor, the July PPI remained flat compared to the previous month, falling short of the market expectation of a 0.2% rise.

Compared to the same month last year, it rose 4.7%, showing a sharp slowdown in the pace of increase from June's 5.5%.

Following the previously released Consumer Price Index (CPI), producer prices also showed an unexpected slowdown, raising expectations that the Federal Reserve will freeze benchmark interest rates at the September FOMC.

In addition, falling international oil prices eased inflationary pressures.

As the International Energy Agency (IEA) forecasted that the decline in global oil demand this year would widen further in the wake of transportation disruptions in the Strait of Hormuz, West Texas Intermediate (WTI) crude dropped more than 2%.

By stock, expectations that demand for AI infrastructure will continue led a rally centered on semiconductor shares.

SanDisk skyrocketed more than 13% after presenting overwhelming mid-to-long-term projections at its investor day event, forecasting that revenue from 2028 to 2030 will record mid-to-upper teens average annual growth.

Tomorrow (August 15), July retail sales and the preliminary August University of Michigan Consumer Sentiment Index will be released.
※ Please note: This article was translated by AI and may contain errors.