US Open: S&P 500 Gains on Softer PPI Inflation 🔼 Memory Stocks Slip, PayPal Surges 15%

Wall Street indices are edging higher after Wednesday’s opening bell, supported by gains in the largest technology companies and further signs that inflationary pressure in the US is easing. The S&P 500 is up around 0.4%, the Nasdaq Composite is gaining 0.2%, and the Dow Jones is adding approximately 0.1%. Sentiment improved following weaker-than-expected PPI data and comments from New York Fed President John Williams, who pointed to growing prospects for a further decline in inflation. However, the scale of the advance remains limited by another rise in oil prices after fresh US strikes on targets in Iran. Compared with Nasdaq 100 futures, which are being weighed down by losses among memory-chip stocks, S&P 500 futures are performing noticeably better.

• Tesla is rising around 2%, while Amazon, Apple, Microsoft, and Alphabet are gaining more than 1%, supporting the broader market.
• The US Producer Price Index fell 0.3% month over month in June, compared with expectations for no change, reinforcing the signal from the earlier, cooler-than-expected CPI report.
• The probability of a Fed rate hike in July fell to 17% from 42% a day earlier, although markets still see the possibility of a move in September.
• Investors reacted positively to John Williams’ comments that inflation may have already peaked and should gradually decline over the coming quarters.
• WTI crude is rising around 1% to above $80 per barrel, while Brent is gaining approximately 0.6% and remains above $85 following further US attacks on Iran.
• BlackRock shares are up more than 6% after the asset manager reported better-than-expected quarterly results.
• Despite improving inflation data, the market remains focused on elevated oil prices and the potential inflationary pressure associated with the AI investment boom.

US500 chart (D1 interval)

The contract is rising today to almost 7,620 points, approaching the all-time-high zone despite a pullback in some technology stocks. The key support level remains the 50-day EMA near 7,500 points, while the 200-day EMA is located close to 7,000 points. A breakout above 7,700 points would be crucial for bulls and could open the way toward the 8,000-point level.

Source: xStation5

US session open – charts

At the start of the session, PayPal leads the Nasdaq 100 gainers after reports of a possible takeover bid from Stripe and private equity firm Advent. Adobe, Workday, and Strategy are also among the strongest performers, while semiconductor companies dominate the decliners, including Sandisk, Marvell, Western Digital, and Micron, suggesting some profit-taking after the sector’s powerful AI-driven rally. Despite weakness in selected memory and chip stocks, broader sentiment toward the technology sector remains positive.

Source: XTB Research

The Dow Jones Industrial Average sector map shows a clear advantage for advancing stocks, with gains led primarily by the largest technology and communications companies, including Apple, Microsoft, Alphabet, and Amazon. JPMorgan and Merck are also performing well, while UnitedHealth, Visa, Coca-Cola, and Cisco are among the stocks weighing on the index. The overall market picture remains moderately bullish, with capital concentrated mainly in the largest technology companies and sectors linked to digitalization.

Source: XTB Research

Company news

PayPal (PYPL.US): Shares of the digital payments platform rose nearly 16% after Reuters reported that Stripe and private equity firm Advent had submitted a $53 billion takeover offer. The proposed price is $60.50 per share. According to the sources, the bid was submitted earlier this month.

Johnson & Johnson (JNJ.US): Shares fell more than 1% in pre-market trading despite better-than-expected second-quarter results. J&J reported adjusted earnings per share of $2.90, compared with the $2.85 forecast. Revenue reached $25.31 billion, exceeding the consensus estimate of $25.05 billion.

Alibaba (BABA.US): Alibaba’s US-listed ADRs rose around 5% following reports that its Qwen AI model will be integrated into Apple Intelligence in China. The information was reported by Chinese state media. The market viewed the development as a potentially important boost to Alibaba’s position in China’s domestic artificial intelligence ecosystem.

Semiconductor sector: Chipmakers advanced at the start of the session, while the VanEck Semiconductor ETF (SMH) gained around 1.2%. ASML led the advance, rising 3% after raising its sales outlook for the second time this year. Intel and Lam Research also gained more than 3%, confirming a broad improvement in sentiment across the sector.

PayPal shares (D1 interval)

PayPal shares are once again trading above the 200-day EMA, marked by the red line, but a reversal of the long-term trend would require a breakout above the upper boundary of the multi-year downward channel. A move above $60 could make such a scenario more likely, while a decline below $50 per share could signal that bears are regaining control and could also imply that the takeover does not go through. The proposed transaction values the company at a premium of approximately 10% to its current share price.

Source: xStation5