As of 1:30 p.m. ET, the Nasdaq Composite (NASDAQINDEX:^IXIC) rose 1.06% to 26,147, the S&P 500 (SNPINDEX:^GSPC) gained 0.49% to 7,552, and the Dow Jones Industrial Average (DJINDICES:^DJI) 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 (NYSE:IBM) shares plunged 24% following a preliminary second-quarter earnings warning about a squeeze on capital expenditures for memory. Meanwhile, CleanSpark (NASDAQ:CLSK) 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 (NASDAQ:TSEM) 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 (NYSEMKT:SPHB) rose 1.7% while the Invesco S&P 500 Low Volatility ETF (NYSEMKT:SPLV) 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 (NYSE:JPM), Bank of America (NYSE:BAC), and Wells Fargo (NYSE:WFC) 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 (NASDAQ:PSKY) and Warner Bros. Discovery (NASDAQ:WBD) merger, potentially further dragging out the slow-moving M&A deal.
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