Live Nasdaq Composite: Tech Stocks Rise in Relief, Treasury Yields Fall as Cooler Inflation Gives Markets a Tailwind

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Cooling Inflation

49 minutes ago

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Inflation is running cooler than expected, giving the Nasdaq a fresh tailwind. June CPI rose 3.5% from a year ago, below expectations for a 3.8% increase, as easing energy prices helped cool consumer prices last month.

Treasury yields fell across the curve, with the 10-year yield down 6 basis points to 4.553%. The 2-year yield, which is more tied to Fed policy expectations, dropped 8 basis points to 4.181%, while the 30-year yield slipped 3 basis points to 5.064%.

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Technology stocks are in relief mode as softer inflation gave Nasdaq futures room to recover from yesterday’s chip-led sell-off. Nasdaq-100 futures jumped 1.3%, while S&P 500 futures rose 0.4%. Dow futures slipped 64 points, or 0.1%, as rising oil prices and a busy earnings calendar kept the broader market more cautious. A cooler June CPI reading than expected is helping to boost sentiment, offsetting interest rate worries for the moment and overshadowing a disappointing quarter from a tech stalwart.

The Nasdaq’s strength was led by a rebound in semiconductors after Monday’s sell-off. The VanEck Semiconductor ETF rose more than 2% in premarket trading, with Applied Materials (Nasdaq: AMAT) up more than 4% and Lam Research (Nasdaq: LRCX), STMicroelectronics (Nasdaq: STM), Teradyne (Nasdaq: TER), and Micron (Nasdaq: MU) all gaining more than 3%. IBM (NYSE: IBM) was the early weak spot, sliding nearly 21% after preliminary Q2 adjusted earnings of $2.93 per share missed the FactSet consensus of $3.01.

Financials were less helpful. JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), Bank of America (NYSE: BAC), and Citigroup (NYSE: C) all traded lower after reporting Q2 results, while Goldman Sachs (NYSE: GS) bucked the trend with an earnings beat that pushed shares up more than 3%. The setup leaves today’s market split between two forces: cooler inflation helping tech and chips recover, while earnings and oil keep the broader tape from looking fully risk-on.

Here’s a look at where things stand as of pre-morning trading:

Dow Futures: 52,678 Down 0.17%
Nasdaq Futures: 29,831 Up 1.21%
S&P Futures: 7,588 Up 0.33%

Market Movers

IBM’s (Nasdaq: IBM) Q2 update fell short of the performance investors have come to expect. IBM shares fell 15% after prelim Q2 results showed revenue rising just 1% to $17.2 billion, with software growth offset by flat consulting and a 7% drop in infrastructure. Non-GAAP EPS rose 5% to $2.93, but the margin picture was mixed enough to knock the stock off its recent AI-infrastructure pedestal. IBM CEO Arvind Krishna conceded, “This quarter we faltered.”

KeyBanc gave the AI chip trade another shot of confidence. Analysts raised price targets across AMD (Nasdaq: AMD), Arm (Nasdaq; ARM), Marvell (Nasdaq: MRVL), Micron (Nasdaq: MU), and NVIDIA (Nasdaq: NVDA) after Asia supply-chain checks pointed to sustained data-center demand. The firm cited tight memory supply, stronger DRAM and NAND pricing, and ongoing AI infrastructure spending, keeping the Nasdaq’s chip leadership story front and center.

Nebius (Nasdaq: NBIS) added another long-term AI infrastructure win, agreeing to sell more than $1 billion in computing capacity to Reflection AI through 2029, according to Bloomberg. The deal keeps NBIS in the middle of the AI data-center trade, where demand for leased GPU capacity is still running ahead of supply.

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