US PPI Eases, S&P Hits New High as Storage and Software Stocks Surge

What happened

US July PPI cooled to a 4.7% year-over-year increase, boosting equities. The S&P 500 rose 0.65% to 7,798.99, a new high. Storage stocks surged, with SanDisk up over 13% after setting targets for mid- to high-double-digit revenue growth through 2030. Software stocks rallied, with Workday jumping up to 30% amid acquisition rumors. Meanwhile, the Nasdaq China Golden Dragon Index fell 1.84%, and crude oil dropped over 2%.

Why it matters

Cooling inflation has narrowed expectations for Fed rate hikes, though internal divisions remain. The S&P's new high suggests capital is seeking new direction. Investors are betting on AI-driven growth and potential M&A in software, while Chinese ADRs underperformed despite improving fundamentals.