Answer Box: U.S. stock indexes were mixed on Wednesday, July 15, 2026, with the S&P 500 edging up 0.15% to a one-month high after June producer prices rose less than expected, while the Nasdaq 100 fell 0.64% dragged by a sharp selloff in chipmaker and AI-infrastructure stocks.
Inflation Data and Fed Comments Boost Broader Market
The S&P 500 and Dow Jones Industrial Average managed modest gains as investors welcomed softer-than-expected inflation data. The U.S. Producer Price Index (PPI) for final demand rose 5.5% year-over-year in June, below the 6.0% reading in May and missing the 6.2% consensus estimate. Core PPI, excluding food and energy, increased 4.7% year-over-year, also weaker than the forecasted 5.1%.
Adding to the positive sentiment, the July Empire State manufacturing survey jumped to 15.6 from 5.7 in June, beating expectations of 9.2. New York Fed President John Williams offered dovish remarks, stating that while inflation remains too high, there are encouraging signs it has peaked and should ease in coming quarters. His comments helped push Treasury yields lower, with the 10-year note yield falling 3.6 basis points to 4.553%.
Chipmaker Rout Hits Nasdaq
Despite the broader market's gains, the tech-heavy Nasdaq 100 fell into negative territory as semiconductor stocks tumbled. The iShares Semiconductor ETF (SOXX) dropped more than 2%. Sandisk (SNDK) plunged over 12%, leading losers in the Nasdaq 100, while Western Digital (WDC) and Seagate Technology (STX) each fell more than 7%. Micron Technology (MU) slid over 6%, and Intel (INTC) lost more than 5%. Advanced Micro Devices (AMD) and Lam Research (LRCX) declined over 4%, and Applied Materials (AMAT) and KLA Corp (KLAC) dropped more than 3%.
The weakness in chip stocks contrasted with strong earnings from ASML, the Dutch lithography equipment maker, which reported robust demand for chips used in artificial intelligence. However, that positive news was not enough to lift the sector. Software stocks fared better, with Thomson Reuters (TRI) rising over 6%, Atlassian (TEAM) up more than 4%, and Adobe (ADBE) gaining over 3%.
Health Insurance Stocks Slide on Guidance Concerns
Health insurance stocks came under pressure after Elevance Health (ELV) tumbled more than 10%. Evercore ISI noted that the company's updated guidance was lower than its second-quarter beat. Molina Healthcare (MOH) fell over 4%, Centene (CNC) dropped more than 3%, and UnitedHealth Group (UNH) declined over 1%.
PayPal Surges on Acquisition Report
PayPal Holdings (PYPL) soared more than 17%, leading gainers in the S&P 500 and Nasdaq 100, following a Reuters report that Stripe and Advent International have made a joint offer to acquire the company for $53 billion, or $60.50 per share. BlackRock (BLK) also jumped over 7% after reporting second-quarter adjusted earnings per share of $13.91, well above the consensus estimate of $12.66.
Geopolitical Tensions and China Data
Geopolitical risks escalated as the interim peace deal between the U.S. and Iran effectively collapsed. The U.S. continued its naval blockade of Iran and launched a fifth straight day of airstrikes, with President Trump pledging to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz. Iran retaliated with missile and drone attacks against Kuwait.
Chinese economic data offered a mixed picture. Second-quarter GDP grew 4.3% year-over-year, slightly below the 4.4% forecast and the smallest increase in 3.5 years. New home prices fell for the 37th consecutive month. However, June industrial production rose 5.3% year-over-year, beating the 4.6% estimate, and retail sales unexpectedly grew 1.0% year-over-year against expectations of a 0.1% decline. The surveyed jobless rate fell to 5.0% from 5.1%.
Earnings Outlook and Rate Hike Odds
Investors are looking ahead to a strong second-quarter earnings season. Bloomberg Intelligence forecasts a 23% increase in S&P 500 earnings, close to the first quarter's 30% blowout. AI spending is expected to drive nearly 60% of earnings-per-share growth, with AI infrastructure stocks leading the way. Markets are pricing in only a 12% chance of a 25-basis-point rate hike at the Federal Reserve's July 28-29 meeting.
Overseas markets were mixed. The Euro Stoxx 50 edged down 0.08%, China's Shanghai Composite fell 0.29%, and Japan's Nikkei 225 rose 1.49%.