U.S. stocks edge higher as cooling inflation steadies trading

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US stocks edge higher on inflation

Highlights

S&P 500 closes at a record high, up 0.65%, as CPI and PPI reports match expectations and ease inflation concerns.
Workday surges nearly 18% after Reuters reports Silver Lake may consider an acquisition; Applied Materials drops 6% despite 25% revenue growth and record EPS due to China slowdown.
Reddit rises 11% in early trading after announcement it will join the S&P 500 Index on August 18, replacing AvalonBay Communities.

Inflation data and company news shape trading

Cboe Global Markets says markets are relatively calm again in early trading, reflecting a week in which Consumer Price Index and Producer Price Index reports match expectations and help reduce inflation worries. The Dow Jones Industrial Average slips slightly into negative territory, while the Nasdaq Composite and the S&P 500 Index edge higher amid somewhat improved summer trading volume.

Thursday’s session finishes stronger after sentiment improves on the inflation readings. The S&P 500 closes at another record high, up 0.65%, while the Nasdaq gains 0.81% and the Dow adds 0.13%.

Several individual stocks are also driving attention. Workday jumps after Reuters reports that private equity firm Silver Lake could be considering an acquisition, with the shares briefly surging 21% before ending nearly 18% higher. Applied Materials, by contrast, falls 6% in early trading even after posting a 25% rise in revenue and record earnings per share, as investors focus on very high expectations and a 20% slowdown in China revenue.

Index changes and outlook lift selected shares

Sandisk extends its gains after outlining a bullish long-term financial framework through 2030 at its investor day. The company forecasts revenue growth in the mid- to high-teens and says adjusted gross margins are set to rise 80% during the period beginning in 2028, helping lift the stock 7.5% in early trading after a 13.7% jump in the previous session.

Netflix trades little changed in early activity following a 5.4% gain on Thursday, when Pershing Square Capital Management, led by Bill Ackerman, discloses a 4.9% stake in the streaming company. Even so, Netflix shares remain down 42% from a year earlier.

Reddit also rallies, rising 11% in early trading after its upcoming addition to the S&P 500 Index on August 18. The social media company replaces AvalonBay Communities, which is being acquired by Equity Residential, and the index inclusion is likely to increase demand from funds that track the benchmark.

In our earlier article on Reddit’s planned addition to the S&P 500, we explained how the index reshuffle triggered a sharp premarket jump and could drive follow-on demand from funds that track the benchmark. We also noted that the change was tied to AvalonBay Communities leaving the index ahead of its deal with Equity Residential, and that the initial inclusion pop can sometimes fade in the months after entry.

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