Market Wrap: Indices Gain on Technology Stocks Rise and Lower US PPI Data

Date: July 15, 2026

Key Takeaways

• US equity indices extended gains, primarily driven by a strong rally in technology stocks.
• European stocks lagged due to higher oil prices.
• US producer inflation (PPI) fell below expectations, with a month-over-month decrease of 0.3%.
• The US dollar edged slightly lower but remained above the key 100 level on the USD Index.

Market Overview

The technology sector is once again the main driver of gains across global equity markets. Investors are trying to balance a robust earnings season against rising geopolitical risks in the Middle East. Current market focus includes AI-related corporate results, fluctuating oil prices, and the Federal Reserve's policy outlook following weaker-than-expected US Consumer Price Index (CPI) data.

US Producer Price Index (PPI)

The latest PPI report indicated a surprising month-over-month decline of 0.3%, contrasting with expectations of a 0.1% increase. The annual rate of PPI also came in lower than anticipated at 5.6%, compared to a forecast of 6.2%. Core PPI showed a sharper slowdown, registering at 4.7% year-over-year against a predicted 5.1%.

Stock Performance

European stocks, particularly the Euro Stoxx 50, traded mostly flat, while the German DAX saw a drop of 0.5%. In the US, Nasdaq 100 futures rose by 0.5%, and S&P 500 futures gained 0.25%, buoyed by strong results from semiconductor companies. Notably, ASML shares surged nearly 8% after the company raised its sales outlook and announced plans to boost production of chipmaking equipment for AI infrastructure. Similarly, SK Hynix shares increased by 9% following a rise in its US-listed ADRs.

Oil Prices and Geopolitical Tensions

Brent crude oil prices advanced for a third consecutive session, trading around $85.60 per barrel. This increase follows a new wave of US strikes on targets in Iran and former President Donald Trump’s pledge to escalate military action. Despite these geopolitical tensions, oil prices remain significantly below previous highs of over $100 per barrel.

Bond Market and Federal Reserve Outlook

The yield on the 10-year US Treasury rose by 1 basis point to 4.60%, with similar movements observed in European bond markets. The US dollar maintained relative stability, with markets largely dismissing the possibility of a Federal Reserve rate hike in the upcoming meeting, while still pricing in a high likelihood of a move in September.

Technical Analysis

The US100 contract is approaching the 30,000-point level, trading above the 50-day exponential moving average at approximately 29,960 points. Investor sentiment remains positive, particularly for stocks linked to AI infrastructure.

Conclusion

Overall, the market is experiencing a positive sentiment driven by technology stocks, despite geopolitical risks and fluctuating oil prices. The recent PPI data suggests a cooling inflationary environment, which may influence future Federal Reserve policy decisions.