As of 1:30 p.m. ET, the Nasdaq Composite (^IXIC +1.04%) rose 1.06% to 26,147, the S&P 500 (^GSPC +0.43%) gained 0.49% to 7,552, and the Dow Jones Industrial Average (^DJI +0.04%) edged up 0.04% to 52,520 as cooling inflation data offset a massive slide in a major blue chip tech component.
Gold prices rose 2.23% to $4,095.00 as of U.S. market close, while the 10-Year Treasury yield climbed 0.06% to 4.62%, as Communication Services led all sectors and Energy lagged despite surging crude prices.
Today’s biggest moves
International Business Machines (IBM 23.80%) shares plunged 24% following a preliminary second-quarter earnings warning about a squeeze on capital expenditures for memory. Meanwhile, CleanSpark (CLSK +7.77%) jumped 15% after securing a $6.6 billion infrastructure lease that could grow to $11.6 billion if two five-year options are exercised.
Tower Semiconductor (TSEM +12.41%) also surged after announcing a $3 billion expansion plan for advanced semiconductor manufacturing capacity in Japan, supported by $1 billion in grants from the country.
What this means for investors
Cooling inflation data helped drive “risk-on” sentiment in U.S. markets, as the Invesco S&P 500 High Beta ETF (SPHB +1.32%) rose 1.7% while the Invesco S&P 500 Low Volatility ETF (SPLV 0.59%) dipped 0.7%. With many analysts and the broader market largely pricing in the potential for a rate hike by the end of the year, today’s 3.5% inflation rate update may temporarily hush these talks, which is great for growth stocks, as the market showed.
Elsewhere, JPMorgan Chase (JPM +2.11%), Bank of America (BAC +1.70%), and Wells Fargo (WFC 2.81%) kicked off earnings season with solid, yet mixed and unspectacular results, sending the massive banks largely sideways. Lastly, 12 states have sued to block the Paramount Skydance (PSKY 2.98%) and Warner Bros. Discovery (WBD +1.35%) merger, potentially further dragging out the slow-moving M&A deal.
Citigroup is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, International Business Machines, JPMorgan Chase, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
