Rising inflation suppresses expected interest rate cuts, technology power supports the market

The higher-than-expected producer price index pushed up the U.S. bond yield rate and the trend of the US dollar, suppressing the business cycle and the evaluation of some growth stocks. However, the strength of large technology equity stocks supported the overall market. The four major indexes showed differences, and semiconductor recessions became a source of pressure. Investors turned to data dependence and policy wait-and-see, and intraday risk appetite cooled down compared with the previous day.

Index divergence shows cooling risk appetite

The Dow Jones Industrial Average was temporarily at 44,817.67, down 0.23%; the S & P 500 Index was temporarily at 6468, up 0.02%; the Nasdaq Index was temporarily at 21,740.28, up 0.13%; the Philadelphia Semiconductor Index was temporarily at 5,849.73, down 0.73%. The supporting effect of technology equity stocks has made growth stocks outperform Dow Jones's legacy and finance, but the decline in chip stocks has limited the spread of upward attacks by high-valuation groups.

Producer prices above expectations rewrite monetary policy bets

The latest PPI increased by 0.9% month-on-month, higher than the market estimate of 0.2%. The annual increase of 3.3% hit a recent high. The core PPI also recorded the largest increase in nearly three years. Data shows that upstream price pressures have warmed up, the market's expectations for a recent sharp interest rate cut have cooled, funds have been withdrawn from interest-rate sensitive cyclical stocks, and the trading focus has shifted to equity stocks with stronger fundamentals.

Yields rise, US dollar strengthens, commodity performance diverges

The 10-year U.S. bond yield rose and the U.S. dollar strengthened against the euro, pound and yen, reflecting immediate pricing as inflation rose again. Oil prices rose intraday and gold weakened, indicating that safe-haven allocation gave way to interest rate and exchange rate factors in the short term; most major crypto assets retreated from the previous day's gains.

Stock rotation is led by large technology and energy assets

At a time when interest rates were re-priced, large technology equity stocks relied on stability to drive the index to resist decline. Energy and asset-related targets were favored by funds, while industry, luxury goods and some durable goods were under pressure. The semiconductor community is simultaneously rolled back, suppressing half of the performance.

The seven giants in science and technology support the market, but electric vehicles weaken

Nvidia(NVDA) rose 0.31% intraday, Tesla(Tesla, TSLA) fell 1.58%, Apple(Apple, AAPL) fell slightly 0.16%, Meta Platforms(Facebook, META) rose 0.91%, Microsoft(Microsoft, MSFT) rose 0.66%, Alphabet (GOOGL) rose 1.03%, and Amazon(Amazon, AMZN) rose 3.40%. Overall, cloud and online advertising momentum supported the performance of high-value stocks, while the performance of electric vehicle groups was relatively weak.

Luxury goods and industrial slumps drag down cyclical stocks

Tapestry(TPR) revised its full-year guidance and warned that new tariffs would eat into profits. Shares fell 14.25%, making them one of the weakest performing stocks in the S & P 500 component. Deere & Company(Deere, DE) lowered its outlook, saying customer spending remains cautious, stock prices fall, and industrial chain and agricultural machinery related targets are under pressure.

Conservative retail and automobile market outlook leads to divergence in individual stocks

Advance Auto Parts(AAP) lowered its earnings guidance after obtaining US$1 billion in new loans, and its share price fell sharply, indicating weak demand visibility in the auto aftermarket; in contrast, Amazon(Amazon, AMZN) benefited from the strengthening of e-commerce and cloud momentum, rising 3.40%, strengthening the counter-decline of non-essential consumer groups;Netflix(NFLX) rose 2.96%, and the streaming platform group simultaneously benefited from funding reimbursement.

Pharmaceutical and financial reports support stock prices

Eli Lilly(LLY) reported that it had raised the price of slimming drug Mounjaro in the UK, driving market profit expectations for weight management products, and its stock price rose;Charles Schwab(SCHW) announced that client assets increased by 15% year-on-year at the end of July, indicating that the return of client funds and the recovery of market volume have driven the stock price upward.

New trends in energy and asset themes benefiting exchanges

Texas Pacific Land Corporation(TPL) announced that it will dual list on the New York Stock Exchange and the new NYSE Texas in Dallas, with shares rising 3.83%. Against the background of rising oil prices and repricing inflation, business models with energy assets and royalty income are favored by funds.

Semiconductor family rollback fees weaken by half

The Philadelphia Semiconductor Index fell 0.73%, as highly valued chip stocks faced discount pressure from higher interest rates. Coherent(COHR) fell 22.17%, becoming one of the stocks that fell sharply during the session; at the same time, Nvidia(NVDA) rose slightly, indicating that the market still maintains attention to the long-term theme of AI but its willingness to chase prices in the short term has cooled.

Packaging and manufacturing related stocks are under pressure

Amcor plc(Amco, AMCR) fell 12.89%, reflecting a more conservative short-term assessment of manufacturing and packaging needs by investors. Relevant raw materials and industrial chain stocks performed weakly under the interest rate repricing scenario.

Derivative and risk indicators show controllable volatility expectations

U.S. stock futures fluctuated simultaneously with spot prices, with no significant deviation; the VIX panic index fluctuated slightly in the low range, indicating that the market's pricing of short-term fluctuations is still controllable. Compared with the stock market, bond and foreign exchange markets respond more directly to inflation data. Higher yields and a stronger US dollar are the main constraints on current risky assets.

Volume focuses on news-driven and equity stocks

Intraday trading was concentrated on individual stocks and large weights with clear catalysts, including Tapestry(TPR), Advance Auto Parts(AAP), Texas Pacific Land Corporation(TPL), Eli Lilly(LLY) and Coherent(COHR). Stock price volatility increased, volume and energy were relatively active, and the overall market volume and energy were structurally dispersed with index differences.

Follow-up observations focus on consumption momentum and policy signals

The market focus will be on the latest guidance on demand from retail sales and corporate financial forecasts, as key verification of consumption momentum and profit visibility. The latest talks from Federal Reserve officials and the trend of bond yields will continue to dominate the valuation framework and capital risk appetite. In the short term, the strength of the US dollar and the rebound in interest rates constitute the upper variables in the stock market, while the weight leaders and high-cash-flow indicators are relatively resilient.