US Stocks Edge Higher as Chipmakers Rally, PPI Data Eyed
US stocks edged higher on Thursday, led by chipmakers, as investors assessed a hotter-than-expected producer price index report and Middle East tensions.
US stocks edged higher on Thursday, snapping a two-day losing streak, as a rally in chipmakers offset concerns over a hotter-than-expected producer price index (PPI) report and ongoing Middle East tensions.
The S&P 500 and Nasdaq Composite both posted modest gains, with the Philadelphia Semiconductor Index climbing over 1%. The move came after data showed US producer prices rose at the fastest annual pace in more than three years in May, driven by higher energy costs. While the PPI reading adds to the narrative of persistent inflation, traders interpreted the core components as less alarming, keeping rate-cut expectations largely intact. For fixed-income markets, the report reinforced the view that the Federal Reserve will remain data-dependent, with the next key input being the consumer price index (CPI) release due next week. Check NowPrice's rates page for the latest pricing on Treasury yields and fed funds futures.
Looking ahead, market participants will focus on the CPI report for further clues on the inflation trajectory. A stronger-than-expected CPI could reignite rate-hike fears, while a softer print might bolster the case for a rate cut later this year. Additionally, geopolitical developments in the Middle East and any Fed commentary will be closely watched for shifts in risk sentiment.