PPI and Applied Materials Take Center Stage 13/08/2026
Market Wrap
US stocks finished mostly higher on Wednesday as a benign inflation report and renewed strength in AI-linked technology shares supported risk appetite.
The S&P 500 rose 0.3% to 7,748.50, while the Nasdaq Composite gained 0.5% to 26,588.49. The Dow Jones Industrial Average was little changed, slipping 22 points to 53,770.27.
July CPI came in broadly as expected, with both headline and core inflation easing slightly from June on an annual basis. The report offered some relief after three Fed officials voted for a rate hike at the last meeting, though inflation concerns remain elevated as US crude climbed back above $83 a barrel.
AI infrastructure names provided another tailwind. CoreWeave (CRWV) and Super Micro Computer (SMCI) rallied after earnings and guidance reassured investors that demand for data-center capacity remains strong.
Geopolitical risks, however, remain unresolved. Iran disputed US claims of progress on reopening the Strait of Hormuz, while vessel traffic through the waterway has fallen to near three-month lows and oil markets continue to price in supply-disruption risk.
US stock futures were little changed early Thursday ahead of another key inflation test. July PPI is due at 8:30 a.m. ET and could provide fresh clues on the Fed outlook. Earnings reactions were weaker elsewhere, with Cisco Systems (CSCO) down nearly 4%, Cerebras (CBRS) off about 15% and Coherent (COHR) lower by roughly 3%.
Chip Rally Nears Bull Market, but Risks Remain
Chip stocks surged on Wednesday, pushing the semiconductor sector close to a new bull market as strong earnings across the AI infrastructure chain reinforced expectations that spending on artificial intelligence remains robust.
The PHLX Semiconductor Index (SOX) gained 2.5% and is now approaching the 20% advance from its recent low that would mark a new bull market. Sandisk (SNDK) rose nearly 6%, Micron (MU) gained about 5% and SK Hynix (SKHY) jumped 9%, while Nvidia (NVDA) and Advanced Micro Devices (AMD) advanced roughly 3% and 2%, respectively.
The strongest moves came from companies deeper in the AI infrastructure ecosystem. CoreWeave (CRWV) and Super Micro Computer (SMCI) both surged around 19%, while optical-networking supplier Lumentum (LITE) climbed more than 13%. Their results and expanding order backlogs provided fresh evidence that demand for GPUs, servers and data-center infrastructure remains strong.
Still, analysts are warning against treating those backlogs as guaranteed future revenue. CoreWeave raised its annual capital-spending outlook to as much as $39 billion despite a considerably more modest revenue trajectory, while Super Micro highlighted more than $60 billion in new orders during the June quarter. Some of those commitments could ultimately be delayed or cancelled, making the scale and quality of future AI demand increasingly important.
The broader takeaway is that the AI trade appears to be widening beyond chipmakers into servers, cloud infrastructure and optical networking. But after another powerful rally, investors are becoming more selective, with earnings growth and the ability to convert massive AI investment commitments into sustainable profits likely to matter more than momentum alone.
Stocks on the Move
- Coherent (COHR): Shares fell nearly 3% in extended trading after fourth-quarter adjusted gross margin came in roughly in line with expectations. The company's first-quarter earnings and revenue guidance, however, topped Wall Street forecasts.
- Cerebras Systems (CBRS): Shares tumbled 14% after second-quarter revenue of $180 million missed the $194 million consensus estimate.
- StubHub (STUB): Shares sank more than 15% after second-quarter adjusted gross margin of 82.2% fell short of expectations. The company nevertheless reaffirmed its full-year adjusted EBITDA outlook.
- Cisco Systems (CSCO): Shares declined 3% after fourth-quarter adjusted gross margin of 66.3% only narrowly exceeded Wall Street expectations.
Watchlist: COHR, CSCO, CBRS, SPCX, MU, SKHY, TPR, CRWV, AAPL, META
Key Economic Events Today
Economic Data (EST)
- 08:00 AM — USD FOMC Member Hammack Speaks
- 08:30 AM — USD Core PPI, PPI
- 08:30 AM — USD Unemployment Claims
- 08:40 AM — USD FOMC Member Barkin Speaks
Earnings
Before Market Open: Brookfield Corp (BN), JD.com (JD), Tapestry Inc. (TPR)
After Market Close: Applied Materials (AMAT), Belite Bio (BLTE)
