Nasdaq Leads Wall Street Higher with 0.74% Jump as Cooling Inflation, ASML Forecast Boost Tech Stocks; Dow, S&P 500 Extend Gains

Mumbai, July 15: U.S. stock markets opened higher on Wednesday, with the tech-heavy Nasdaq Composite leading the charge as cooler-than-expected inflation data and a bullish outlook from Dutch chip equipment maker ASML revived investor appetite for technology and semiconductor stocks. The rally was further bolstered by a weaker-than-anticipated Producer Price Index (PPI) report, which reinforced hopes that the Federal Reserve may soon pause its aggressive rate hiking cycle.

The Nasdaq Composite (^IXIC) surged 193.82 points, or 0.74%, to 26,300.83 in early trading. The S&P 500 (^GSPC) gained 36.84 points, or 0.49%, to 7,580.43, while the Dow Jones Industrial Average (^DJI) rose 279.84 points, or 0.53%, to 52,788.11 as of 9:37 a.m. EDT.

Nasdaq Leads With 0.74% Jump as Software Stocks Rebound and Chipmakers Rally

The tech-heavy index outperformed its peers as buying interest returned to technology and software names, which had experienced recent weakness. The Nasdaq 100 futures were trading 0.51% higher at 29,941 points ahead of the opening bell, indicating strong institutional appetite for growth stocks.

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The positive start came as investors rotated back into growth-oriented technology stocks, with software companies leading the gains. The broader market also remained in positive territory, reflecting steady risk appetite at the opening bell. The S&P 500 was trading just below its 52-week high of 7,620.90, while the Nasdaq Composite remained below its one-year peak of 27,190.21. The Dow Jones Industrial Average was also approaching its 52-week high of 53,289.30.

Top Gainers Today: Aehr Test Systems Soars 43.6%, Lucid Gains 18.4%, PayPal Rises 16.7%

Wednesday’s trading session witnessed several standout performers across the technology, automotive, and financial sectors. Aehr Test Systems (AEHR) emerged as the top percentage gainer, surging 43.59% to $103.40, climbing $31.39 on volume of 3.76 million shares. The semiconductor testing equipment provider, with a market capitalization of $3.25 billion, has delivered an extraordinary 387.21% return over the past 52 weeks.

Lucid Group (LCID) advanced 18.40% to $5.47, adding $0.85 on volume of 14.74 million shares. The electric vehicle manufacturer, valued at $2.14 billion, has traded between $2.37 and $33.70 over the past year. Veradermics (MANE) rose 15.85% to $127.31, up $17.42, with the company boasting a market cap of $5.32 billion and a 191.84% 52-week gain.

PayPal Holdings (PYPL) shares gained 16.65% to $55.26, climbing $7.89 on robust volume of 34.52 million shares, significantly above its three-month average of 15.30 million. The digital payments giant, with a market cap of $47.87 billion, trades at a P/E ratio of 8.93. MINISO Group (MNSO) rose 10.15% to $12.70, adding $1.17 on volume of 202,803 shares.

Karman Holdings (KRMN) advanced 8.90% to $49.90, up $4.07, while Mesoblast (MESO) gained 8.48% to $18.16. KE Holdings (BEKE) rose 7.61% to $17.33, adding $1.23 on volume of 1.04 million shares. BlackRock (BLK) gained 7.13% to $1,098.53, climbing $73.09 on volume of 408,363 shares, while Alibaba (BABA) rose 7.12% to $120.32, adding $8.00 on volume of 8.62 million shares.

Top Losers Today: Pentair Drops 15.1%, Celcuity Falls 14.7%, Elevance Health Sinks 8.3%

Several stocks experienced significant declines, with industrial and healthcare names featuring prominently among the day’s worst performers. Pentair plc (PNR) led the decliners, falling 15.08% to $64.28, dropping $11.40 on volume of 4.08 million shares, significantly above its three-month average of 2.26 million. The industrial company, valued at $10.67 billion, trades at a P/E ratio of 19.23 and has declined 27.83% over the past year.

Celcuity Inc. (CELC) dropped 14.72% to $94.69, falling $16.36 on volume of 2.89 million shares. The biotechnology firm, with a market cap of $4.63 billion, has gained 701.23% over the past 52 weeks despite today’s decline. Elevance Health (ELV) sank 8.32% to $391.29, down $35.50 on volume of 904,569 shares. The health insurance provider, valued at $84.88 billion, trades at a P/E ratio of 18.08.

Also Read: How to Invest in S&P 500 Stocks Through Index Funds

Sandisk Corporation (SNDK) declined 8.27% to $1,612.41, losing $145.41 on volume of 2.99 million shares. The memory chip maker, with a market cap of $239.52 billion and a P/E ratio of 56.35, has delivered a staggering 4,150% return over the past year. Progressive Corporation (PGR) fell 7.74% to $209.05, dropping $17.53, with the insurer’s market cap standing at $121.32 billion.

Legend Biotech (LEGN) declined 7.79% to $23.67, losing $2.00 on volume of 1.4 million shares. Corning Incorporated (GLW) fell 5.67% to $177.00, down $10.64 on volume of 1.65 million shares. The specialty glass manufacturer, valued at $150.76 billion, has gained 254.24% over the past year. Hayward Holdings (HAYW) dropped 5.95% to $14.94, down $0.94, while Regencell Bioscience (RGC) fell 3.36% to $5.46.

ASML Stock Pops 3% on Strong Orders as AI Demand Drives Raised Sales Forecast

ASML Holding (ASML) stock jumped more than 3% in premarket trading, lifting shares of semiconductor companies. The Dutch chip-equipment maker reported better-than-expected second-quarter results and raised its full-year sales outlook as it expands production capacity to meet surging demand driven by the AI-fueled semiconductor boom.

The company earned 7.58 euros per share ($8.65) as revenue rose 20% to 9.33 billion euros ($10.65 billion) , each beating what analysts had forecast. ASML now expects 2026 net sales of about $49.2 billion to $51.5 billion, well above the roughly $45 billion average analyst estimate compiled by Bloomberg and above the high end of its previous guidance.

CEO Christophe Fouquet stated that “ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced Logic and Memory chips, further strengthening the semiconductor industry’s growth outlook.” Orders for the company’s EUV lithography machines, which are essential for manufacturing chips used in AI applications and data centers, now stretch into 2028.

The VanEck Semiconductor ETF (SMH) advanced 1.2% in early trading, led by ASML’s gains. Intel (INTC) and Lam Research (LRCX) were also up more than 3% , while Nvidia (NVDA) shares edged higher after leading the “Magnificent Seven” with a 4% gain on Tuesday.

PayPal Shares Surge 15% on $53 Billion Takeover Bid from Stripe and Advent

PayPal Holdings (PYPL) shares soared 15% to lead the S&P 500 and Nasdaq following a Reuters report that payments firm Stripe and private-equity company Advent International made a more than $53 billion offer to buy the digital payments platform.

Citing two people familiar with the matter, Reuters said the deal would price PayPal at $60.50 per share, and that the offer was submitted earlier this month. The proposed deal represents a significant premium to its recent closing price, reigniting interest in the payments sector.

Analysts noted that PayPal’s valuation and growth potential make it an attractive acquisition target, especially as private equity and fintech firms seek strategic expansion opportunities. The stock was last seen trading at $54.40, up $7.03, or 14.83% , on volume of 35.04 million shares, well above its three-month average of 15.30 million.

BlackRock Crosses $15 Trillion AUM as Shares Jump 7.41% on Earnings Beat

BlackRock (BLK) shares advanced 7.31% to $1,100.89 after the asset management giant reported better-than-expected second-quarter results. The company posted adjusted earnings per share of $13.91, up 15% year-over-year and outperforming expectations of $12.66. Revenue came in at $7.08 billion, beating estimates of $6.72 billion.

The firm’s assets under management grew to $15.345 trillion from $13.895 trillion at the end of Q1. BlackRock brought in $192 billion in net client cash for the quarter, pushing the firm past the $15 trillion mark. The company also set a record for net inflows, bringing in $231 billion for the first half of the year.

“Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology,” CEO Larry Fink said in a statement. Net flows to long-term investment funds came in at $199 billion, outperforming analyst expectations of $170 billion.

IBM Rebounds 2.5% After 25% Plunge as Morgan Stanley, J&J Report Earnings

IBM (IBM) shares rebounded mildly, rising 2.5% in early trading, after the stock plunged 25% on Tuesday. The decline followed CEO Arvind Krishna’s warning in a letter to investors that the tech giant’s second-quarter software and infrastructure results were worse than expected as clients shifted spending “toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases.”

Morgan Stanley (MS) shares rose more than 1% after the company reported record revenue and profit for Q2. The investment bank posted $3.46 in earnings per share on revenue of $21.35 billion. Analysts surveyed by LSEG had penciled in earnings of $2.94 per share and $19.64 billion in revenue for the period.

Johnson & Johnson (JNJ) shares lost more than 1% in the premarket, despite posting better-than-expected results for the second quarter. The pharmaceutical giant earned an adjusted $2.90 per share on revenue of $25.31 billion. Analysts polled by LSEG expected a profit of $2.85 per share on revenue of $25.05 billion.

Alibaba ADRs Jump 7.49% on Qwen AI Integration with Apple Intelligence in China

U.S.-listed shares of Alibaba Group Holding Limited (BABA) rose 7.49% to $120.73 in early trading on news that its Qwen AI model will be integrated into Apple Intelligence in China, state media reported. The Chinese conglomerate’s ADR shares were last seen up $8.41 on volume of 7.08 million shares.

The move follows broader strength in Chinese technology stocks, with the company’s market capitalization currently standing at $288.70 billion. Alibaba has a price-to-earnings ratio (TTM) of 17.31 and has traded in a 52-week range of $91.99 to $192.67.

Elevance Health Sinks 12%, Top Losers Include Sandisk, Corning and SK Hynix

Elevance Health (ELV) shares sank 12% after reporting quarterly results, with the stock trading at $390.32, down $36.47 or 8.55%. The health insurance provider’s market capitalization stands at $84.74 billion, with a P/E ratio of 18.08.

Sandisk Corporation (SNDK) fell 5.45% to $1,661.96, down $95.86, on volume of 2.18 million shares. The memory chip maker has a market cap of $244.64 billion and has seen a remarkable 4,150% increase over the past 52 weeks.

Corning Incorporated (GLW) declined 5.98% to $176.41, down $11.23, with the specialty glass and ceramics company having a market cap of $150.89 billion. SK Hynix (SKHY) dropped 5.86% to $182.55, despite having gained 27% on Tuesday. The South Korean memory chip giant has a market cap of $1.28 trillion.

Oil Prices Rise 1% as U.S. Launches New Wave of Strikes Against Iran

Crude prices perked up after U.S. Central Command (CENTCOM) said the U.S. launched more attacks against Iran. “The strikes are designed to further degrade military capabilities Iranian forces have used to attack commercial shipping in the Strait of Hormuz,” CENTCOM said in a post on X.

West Texas Intermediate (WTI) futures were up 1% at $80.21 per barrel. International Brent crude gained 1.1% to trade at $85.68 per barrel. President Trump told Fox News on Tuesday that the U.S. would intensify attacks on Iran until the country relents, stating, “We’re going to knock out all of their bridges unless they get to the table and negotiate.”

The escalation in geopolitical tensions partially limited gains in equities, as rising energy prices could potentially reignite inflationary pressures. The 10-year Treasury yield fell to 4.57% from 4.61% before the PPI reading, providing some support to rate-sensitive growth stocks.

Wholesale Inflation Unexpectedly Falls 0.3% in June, Bolstering Rate Pause Hopes

The Producer Price Index (PPI) for June, released Wednesday by the Bureau of Labor Statistics, showed wholesale inflation slowed at a quicker rate than expected. Producer prices fell by 0.3% in June over the previous month, where economists had predicted no change. This measure came in far below May’s revised gain of 0.6%.

The “core” reading, which excludes the more volatile food and energy costs, showed producer prices advanced by 0.2% over the previous month. This was slightly below the 0.3% growth economists had predicted and above May’s revised gain of 0.1%.

On a year-over-year basis, headline prices rose by 5.5% in June, below estimates of 6.2% and the previous month’s revised 6% print. Core inflation came in at 4.7%, cooler than estimates of 5.1% and the previous month’s gain of 4.9%.

New York Federal Reserve President John Williams said in a speech Wednesday that “there are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters,” further boosting investor sentiment.

The combination of cooling wholesale inflation and robust earnings from key technology companies has provided a constructive backdrop for equity markets. Investors will closely monitor the Federal Reserve’s Beige Book release and Fed Chairman Kevin Warsh’s testimony before the Senate Banking Committee for further policy signals. Additionally, United Airlines’ earnings report after the closing bell will offer insights into consumer travel demand and economic health.