US stocks traded mixed on Wednesday as chip stocks pulled back despite robust earnings from chip equipment maker ASML (ASML) and a softer-than-expected wholesale inflation reading.
The Dow Jones Industrial Average (^DJI) rose 0.3%, the S&P 500 (^GSPC) gained 0.4%, and the Nasdaq Composite (^IXIC) advanced 0.6%, extending a modest rally from the previous session.
ASML upgraded its full‑year sales outlook, beating Wall Street estimates on AI‑driven demand, and announced plans to boost its chipmaking equipment capacity by 30%. Nevertheless, memory chip producers Micron Technology (MU) and SK Hynix (SKHY) fell more than 7% as investors rotated out of the sector.
The Producer Price Index revealed that wholesale inflation decelerated faster than expected in June, mirroring the cooler Consumer Price Index that recorded its largest month‑over‑month decline since April 2020.
The softer inflation data helped counterbalance rising oil prices, even as former President Trump warned of escalating strikes on Iran, stating, “We’re going to knock out all of their bridges unless they get to the table and negotiate,” according to Bloomberg.
Earnings season remains in full swing, with Morgan Stanley (MS), BlackRock (BLK) and Johnson & Johnson (JNJ) releasing results before the opening bell, while United Airlines Holdings (UAL) is slated to report after markets close.
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