The Prime Daily: 16 July 2026

Authored By Prime Research | Published at: Jul 16, 2026 09:23 AM IST

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Wall Street Rallies as Soft PPI Data Eases Rate Hike Fears

Major US equity benchmarks moved higher Wednesday after a softer-than-expected Producer Price Index report added momentum to the broader market. The Nasdaq led gains with a 0.62% advance, while the S&P 500 and Dow Jones Industrial Average rose 0.38% and 0.29%, respectively.

U.S. producer prices surprised to the downside, with the PPI declining 0.3% against expectations of an increase a sharp reversal from the prior month’s 0.6% rise and a signal of easing wholesale price pressures. The reading came a day after June CPI data showed a similar cooling trend, with headline inflation at 3.5% year-over-year.

Together, the prints helped soothe concerns that an energy-driven inflation bump would push the Fed toward an earlier rate hike, easing fears of action at the July 28–29 FOMC meeting.

Large-cap growth names, including Apple, Alphabet, and Amazon, posted strong gains, offsetting a broader pullback in semiconductor stocks. Apple shares surged over 4% to a record $327 on a pivotal Chinese regulatory approval for its AI platform.

BlackRock shares jumped 6.6% after assets under management surged past $15 trillion, pushing the S&P 500 Financials sector to a record high. The result capped a broadly positive week for bank earnings, with JPMorgan, Bank of America, Goldman Sachs, and Wells Fargo also posting solid numbers.

In Asia, the Bank of Korea hiked its benchmark policy rate by 25 basis points to 2.75% its first increase since January 2023 and in line with consensus estimates.

The move follows headline inflation hitting 3.2% in June, its highest since 2023; the BOK said price pressures are likely to remain above its 2% target for some time as elevated energy costs continue to feed through the economy.

The Union Cabinet approved a new mobile phone manufacturing scheme with an outlay of ₹62,500 crore to strengthen India’s electronics manufacturing ecosystem. The five-year scheme, valid from FY27 to FY31, will offer incentives of 2.25–5% on eligible sales and succeeds the earlier Mobile Phone PLI 1.0 scheme.

Further reinforcing its electronics push, the Cabinet also approved an additional capital outlay of ₹1.28tn for the semiconductor programme. The funding will support chip design, fabrication facilities, intellectual property development and research & development, strengthening India’s semiconductor ecosystem.

India operationalised its Comprehensive Economic and Trade Agreement (CETA) with the UK by flagging off export consignments worth USD 140mn under the preferential tariff regime. The initial shipments include electronics, pharmaceuticals, and gems & jewellery.

The Indian rupee extended its decline for a third straight session yesterday, weakening by 5 paise to close at 96.25, its lowest level since May 21. The currency remained under pressure from rising crude oil prices and persistent dollar demand from importers.

The Nifty index remains range-bound within the 24,000–24,260 consolidation zone, and a decisive breakout from this band will be crucial for the next directional move.

On the downside, a sustained breach below 24,000 may open the door for further weakness towards 23,800. On the upside, a breakout above 24,260 could pave the way for a move towards 24,530.

Indian markets are set to open on a flat to mildly positive note amid mixed cues

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