Nasdaq Composite Gains 0.90% to 26,107 on Cooling Inflation Data; IBM Plunges 25% in Worst Drop Since 1987 as Enterprise Spending Shifts to AI Infrastructure

Mumbai, July 15: The Nasdaq Composite advanced 233.83 points (0.90%) to close at 26,107.01, leading U.S. equity benchmarks higher as softer-than-expected inflation data reduced expectations of near-term Federal Reserve rate hikes.  

The S&P 500 added 28.49 points (0.38%) to settle at 7,543.89, while the Dow Jones Industrial Average eked out a marginal gain of 9.63 points (0.02%) to finish at 52,508.27, as a 25% collapse in International Business Machines (IBM) shares capped the blue-chip index’s advance.  

Trading volumes reached 6.04 billion shares on the Nasdaq and 2.70 billion on the S&P 500, with the Nasdaq’s 52-week range extending from 20,507.06 to 27,190.21. 

Semiconductor Stocks Rebound 2-27% After Monday Sell-Off, Led by SK Hynix and Lam Research 

Chip stocks staged a robust recovery following Monday’s sharp declines, with the VanEck Semiconductor ETF (SMH) advancing 2% as investors rotated back into AI-related names. U.S.-listed shares of South Korean memory chip maker SK Hynix (SKHY) soared 27.47% in volatile trading, paring some losses from Monday’s 9% decline following the company’s successful ADR listing. Lam Research (LRCX) surged 4.90% to lead semiconductor gains, while Micron Technology (MU) gained 4.87% and Intel Corporation (INTC) rose 4.51%. Applied Materials (AMAT) advanced 3.50%, KLA Corporation (KLAC) gained 3.70%, ASML Holding (ASML) rose 2.85%, and Advanced Micro Devices (AMD) climbed 2.49%. 

Tower Semiconductor (TSEM) jumped 11.24%, while Applied Optoelectronics (AAOI) advanced 12.13% and Netskope Inc. (NTSK) rose 11.48%. Axcelis Technologies (AXTI) surged 14.09%, and Sezzle Inc. (SEZL) added 13.82%. The Roundhill Memory ETF (DRAM) jumped 7% after dropping 9% in the previous session, while fellow memory chipmakers Sandisk (SNDK) gained 5.01%, Seagate Technology (STX) rose 2.02%, and Western Digital (WDC) advanced 1.40%. 

The semiconductor sector’s volatility gauge, measured by the 50-day rolling standard deviation of daily returns for the iShares Semiconductor ETF (SOXX), climbed to 4.2%, its highest level since May 2020, indicating heightened market choppiness in AI-related trades. Nvidia Corporation (NVDA) advanced 4.05%, while Broadcom (AVGO) rose 1.33%, with mega-cap names experiencing comparatively lower volatility than smaller chipmakers. Marvell Technology (MRVL) and ARM Holdings (ARM) demonstrated among the highest 50-day standard deviations in the group, with ARM falling 6.06% despite the broader semiconductor rally. 

IBM Shares Suffer Worst Decline Since 1987 on Preliminary Results Miss, Drags Dow Jones 

International Business Machines (IBM) plunged 25.21% to close at 217.07, marking the company’s steepest single-day decline since October 1987 when the stock fell 23.7%. The technology giant, headquartered in Armonk, New York, and operating across hybrid cloud, software, and infrastructure segments, reported preliminary second-quarter results revealing revenue of $17.2 billion, up 1% year-over-year but falling short of the $17.8 billion analyst consensus according to Visible Alpha estimates. 

Earnings per share came in at $2.27, well below the $2.60 analysts had projected, while adjusted EPS of $2.93 narrowly missed the $2.98 consensus. The company’s software revenue growth decelerated to 5% from 11% in the prior quarter, while infrastructure revenue declined 7% after increasing 15% in Q1. IBM by itself was poised to slice approximately 425 points off the Dow Jones Industrial Average in early trading, with every $1 move in any stock in the 130-year-old benchmark moving the average by 6.16 points. 

IBM Chairman and Chief Executive Officer Arvind Krishna acknowledged in a letter to investors that the company “faltered” during the quarter, attributing the weakness to an unexpected shift in enterprise customer spending priorities. “In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases,” Krishna stated, adding that the company had not anticipated the magnitude of the capex reprioritisation. 

The earnings warning triggered selling pressure across software stocks, with Salesforce (CRM) declining 2.16%, Adobe (ADBE) falling 4.30%, Intuit (INTU) dropping 2.53%, ServiceNow (NOW) declining 5.01%, and Synopsys (SNPS) falling 1.85%, as investors interpreted IBM’s commentary as indicative of broader enterprise spending shifts toward AI infrastructure at the expense of traditional software investments. 

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Cybersecurity Stocks Surge as CrowdStrike Jumps 12% on IBM’s Spending Commentary 

CrowdStrike Holdings (CRWD) surged 12.11% to lead Nasdaq gainers, while Palo Alto Networks (PANW) advanced 6.84%, Fortinet (FTNT) rose 3.89%, and Okta (OKTA) jumped significantly during the session, as investors interpreted IBM’s earnings commentary as positive for cybersecurity spending. The Global X Cybersecurity ETF (BUG) jumped more than 6%, reflecting investor confidence that enterprise clients are not cutting back on security investments despite shifting IT budgets toward AI hardware. 

Krishna noted that “rapidly-evolving, industry-wide cybersecurity concerns” drew customer focus during the quarter, alongside spending on AI infrastructure. Analysts viewed IBM’s comments as validating the cybersecurity sector’s resilience, with spending on protection remaining a priority even as companies reallocate capital toward AI infrastructure build-out. 

ChronoScale Holdings (CHRN) gained 16.68% and AtaiBeckley Inc. (ATAI) rose 14.08% in broader tech rallies, while Regencell Bioscience Holdings (RGC) advanced 11.88% and Bitmine Immersion Technologies (BMNR) climbed 11.46%. York Space Systems (YSS) gained 11.21% and Trekor Metals (TGB) rose 13.60% among the session’s notable advancers. 

Goldman Sachs Jumps 9% on Record Trading Revenues as Bank Earnings Beat Estimates 

Goldman Sachs (GS) surged 9.15% to lead Dow Jones gainers after reporting second-quarter earnings of $20.98 per share, substantially exceeding the $14.48 LSEG analyst consensus. Revenue reached $20.34 billion, surpassing the $16.13 billion estimate, driven by **record equities trading revenues of $7.42 billion** and a 55% jump in investment banking fees. The banking giant’s net profit nearly doubled to $6.63 billion, with shares hitting an all-time high. 

JPMorgan Chase (JPM) advanced 2.50% after posting record second-quarter profits of $21.2 billion, driven by a rebound in dealmaking and trading activity. Investment banking fees rose 30% year-over-year, while markets revenue surged 35%. However, shares trimmed gains after the bank raised its 2026 expense forecast, with Chief Executive Officer Jamie Dimon warning of risks including geopolitical tensions, sticky inflation, and elevated asset prices. 

Bank of America (BAC) gained 1.88% as net income rose 27% to $9.1 billion, with revenue climbing 15% to $31.6 billion. Morgan Stanley (MS) rose 3.17% after posting strong investment banking and trading revenues. Citigroup (C) fell 5.37% despite reporting revenue of $24.77 billion, exceeding the $23.74 billion consensus, as the market reacted to management’s expense outlook. Wells Fargo (WFC) declined 2.42% after posting earnings of $2.00 per share on revenue of $22.62 billion, beating analyst estimates of $1.72 and $21.84 billion respectively. 

Lucid Group Plunges 16% on Bankruptcy Report Denial, While Refiners Hit All-Time Highs 

Lucid Group (LCID) fell 16.15% in volatile trading, at one point dropping as much as 55% following reports that the electric vehicle maker had engaged restructuring adviser AlixPartners to examine strategic options including potential bankruptcy filing or taking the company private. The company subsequently denied the reports, stating that “the rumors are completely false” and that it “has sufficient liquidity to carry its operations well into next year.” 

Lucid confirmed it is working with AlixPartners but clarified that the adviser “has not recommended bankruptcy to management or the board.” The EV maker, which relies on funding from Saudi Arabia’s Public Investment Fund, has seen its shares lose approximately 80% of their value over the past 12 months. 

Oil refiners demonstrated remarkable strength, with four companies hitting all-time highs during Tuesday’s session. Valero Energy rose 83% year-to-date, Marathon Petroleum advanced 86%, Phillips 66 gained 56%, and Par Pacific Holdings more than doubled, soaring 108% in 2026. PBF Energy surged 123% year-to-date, Delek US Holdings climbed 103%, and HF Sinclair gained 79%, driven by wide crack spreads and robust refining margins. 

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Top Gainers and Losers Across Major Indices 

Nasdaq Composite gainers included CrowdStrike (CRWD) +12.11%, Palo Alto Networks (PANW) +6.84%, SK Hynix (SKHY) +27.47%, Lam Research (LRCX) +4.90%, Micron Technology (MU) +4.87%, and Intel (INTC) +4.51%. Nvidia (NVDA) and Broadcom (AVGO) advanced 4.05% and 1.33% respectively. 

Nasdaq Composite losers included ARM Holdings (ARM) -6.06%, Adobe (ADBE) -4.30%, Qualcomm (QCOM) -3.21%, Comcast (CMCSA) -3.30%, and AstraZeneca (AZN) -2.91%. Intuitive Surgical (ISRG) fell 6.79%, while Biogen (BIIB) declined 8.19%. 

Polestar Automotive (PSNY) fell 14.99%, Denali Therapeutics (DNLI) declined 14.46%, and Ericsson (ERIC) dropped 13.48%. Nebius Group (NBIS) fell 7.86%, Virtu Financial (VIRT) declined 7.75%, Teradata (TDC) dropped 7.44%, Atlassian (TEAM) fell 7.36%, and Freedom Holdings (FRHC) declined 7.41%. TeraWulf (WULF) dropped 7.08%, Krystal Biotech (KRYS) fell 6.61%, and ChipMOS Technologies (IMOS) declined 6.75%. 

Dow Jones gainers included Goldman Sachs (GS) +9.15%, JPMorgan Chase (JPM) +2.50%, and Intel (INTC) +2.44% in earlier trading. Dow Jones losers included IBM -25.21%, Microsoft (MSFT) -1.55%, Merck (MRK) -2.60%, and Johnson & Johnson (JNJ) -1.57%. 

S&P 500 gainers included Dell Technologies (DELL) +7.14%, Goldman Sachs (GS) +9.15%, and Lam Research (LRCX) +4.90%. S&P 500 losers included International Business Machines (IBM) -25.21%, Abbott Laboratories (ABT) -3.43%, Progressive (PGR) -3.47%, and Philip Morris (PM) -2.38%. 

Oil Prices Pare Gains After Trump Abandons Strait of Hormuz Cargo Fee 

Crude oil prices eased off session highs after President Donald Trump abandoned his demand for a 20% fee on cargo shipments transiting the Strait of Hormuz, replacing the proposal with trade and investment deals with Gulf countries. West Texas Intermediate futures settled up 1.82% at $79.56 per barrel, while Brent crude futures added 1.98% to $84.95. Prices had earlier topped $80 per barrel as the U.S. launched fresh strikes on Iran, with Central Command confirming operations began Tuesday afternoon Eastern Time. 

“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump wrote on Truth Social. The second-round naval blockade, expected to begin at 4 p.m. ET, will remain despite the president’s shift on cargo fees. U.S. diesel prices rose approximately 5% amid concerns that Ukrainian attacks on Russian energy infrastructure could disrupt supply and tighten global fuel markets. 

June CPI Falls 0.4% to 3.5%, Easing Rate Pressure 

The Consumer Price Index declined 0.4% in June, bringing annual inflation to 3.5%, below the 3.8% consensus and down from May’s 4.2%. Energy prices retreated 9.7% following a temporary Iran truce. Core inflation remained flat at 2.6% year-over-year versus expectations of 2.9%, with shelter costs rising just 0.1%, the smallest increase since early 2021. Fed rate hike probabilities for July dropped to 17% from 42%, though September expectations remained elevated at 63% amid Middle East tensions. The 10-year Treasury yield settled at 4.58%, down four basis points, while the 30-year yield stood at 5.09%. 

Federal Reserve Policy and Market Outlook 

Federal Reserve Chairman Kevin Warsh began two days of testimony before the U.S. House Financial Services Committee, reinforcing the central bank’s commitment to restoring price stability. “If we get policy right—and we will—the inflation surge of the last five years will be a thing of the past,” Warsh stated in prepared remarks, adding that the Fed has “no tolerance for persistently elevated inflation.” 

Warsh’s hawkish stance suggests the central bank is unlikely to cut rates in the near term despite easing inflation pressures, with markets pricing in a 63% probability of a rate increase at the September meeting. The Fed Chairman’s testimony occurred amid escalating U.S.-Iran tensions and rising oil prices, which could reignite inflationary pressures if sustained. 

“Tuesday’s weaker-than-expected CPI print suggests the inflation surge driven by the Iran war is fading, but this may just be a temporary relief as tensions have escalated in recent days,” said Skyler Weinand, chief investment officer at Regan Capital. “The weaker inflation data likely keeps the Fed on hold for now and reduces any rate hike odds, but we remind investors that almost every communication that has emanated from Chair Warsh during his short tenure so far has been hawkish.” 

The June CPI at 3.5% annualised eases near-term Fed tightening odds, though rising oil prices from Middle East tensions pose renewed inflation risks. Enterprise spending shifts favour AI infrastructure and cybersecurity over traditional software, while banking revenues remain robust despite expense and geopolitical concerns. 

Source 

• https://www.nasdaq.com/ 

• spglobal.com/spdji/en/indices/equity/sp-500/ 

• https://www.dowjones.com/