Stock Market Today: SPY, QQQ Mixed as PPI Inflation Cools; Trump Ramps Up Pressure on Iran

The S&P 500 ETF (SPY) closed higher on Wednesday following an encouraging wholesale inflation report. However, the tech-heavy Nasdaq 100 ETF (QQQ) was weighed down by a selloff in semiconductor and memory stocks.

News That Moved the Stock Market Today

• The Producer Price Index (PPI) declined 0.3% in June, below expectations for no change. On a year-over-year basis, PPI increased 5.5%, under the estimate of 6.2%. The PPI measures the prices businesses receive for goods and services and is considered a leading indicator of inflation. A 12% drop in gasoline prices drove nearly two-thirds of the overall decline in goods prices.
• Core PPI, which excludes volatile food and energy categories, increased 0.2% in June, below expectations for a 0.3% gain. Core PPI rose 4.7% for the 12 months ended June, also below the estimate of 5.1%.
• President Trump warned the U.S. would target Iran’s power plants and bridges next week unless Tehran agrees to resume negotiations. “Next week it gets really bad for them because next week comes the power plants,” he told Fox News.
• New York Fed President John Williams said he believes that inflation will fall to the 2% range by 2028.
• PayPal (PYPL) surged following reports that Stripe and private equity firm Advent International offered to buy the payment processor for $53 billion, or $60.50 per share.
• Semiconductor and memory stocks faced pressure as investors rotated capital into the Magnificent 7. SanDisk (SNDK), Micron (MU), and AMD (AMD) closed with significant losses.
• SpaceX (SPCX) tumbled below its IPO price of $135, closing lower for four consecutive trading sessions.
• Wells Fargo analyst Colin Langan raised his Tesla (TSLA) price target to $130 from $125. The new target implies downside of 67%, with Langan warning that rising costs will eat into the EV maker’s profits.