S&P 500 Rises on Cooling Inflation; Memory Chip Stocks Plunge Over 8% on China Supply Fears

On Wednesday, July 15, the S&P 500 rose 0.38%, extending gains to a second consecutive trading day, as U.S. inflation data came in below expectations. The core Producer Price Index for June increased 4.7% year-over-year, easing market concerns about Federal Reserve rate hikes this year.

Memory chip stocks suffered sharp losses amid worries over increased supply from Chinese chipmaker CXMT's upcoming initial public offering and planned capacity expansion. Micron (MU) fell 8.02%, SK Hynix (SKHY) plunged over 8%, and the Philadelphia Semiconductor Index declined 2.08%. U.S. Treasury yields fell, with the 10-year rate dropping 3 basis points to 4.56%.