US stocks trimmed gains on Wednesday as a softer-than-expected wholesale inflation reading, and chipmaking equipment maker ASML’s (ASML) bullish outlook on AI demand failed to lift the chip sector.
The Dow Jones Industrial Average (^DJI) fell below the flatline, while the S&P 500 (^GSPC) was little changed. The Nasdaq Composite (^IXIC) also dropped 0.1% following gains from the day before.
Tech stocks were mixed after ASML lifted its annual sales forecast above Wall Street forecasts, citing AI demand, and said it plans to increase its production capacity for chipmaking equipment by 30%. Chip stocks, however, declined.
On the economic data front, the Producer Price Index showed that wholesale inflation slowed more quickly than expected in June, echoing cooler-than-expected Consumer Price Index data, which showed the largest single-month decline in inflation since April 2020.
That helped offset pressure from rising oil prices as President Trump said he would intensify attacks on Iran until the country relents. “We’re going to knock out all of their bridges unless they get to the table and negotiate,” Trump told Fox News on Tuesday, per Bloomberg.
Earnings season, meanwhile, continues to pick up, with Morgan Stanley (MS), BlackRock (BLK), and Johnson & Johnson (JNJ) all reporting before the bell, while United Airlines Holdings (UAL) will report after the close of the trading day this afternoon.