Apple Hits Record High on China AI Approval, Cooling Inflation
Apple shares surged to an all-time high after reports that the company received approval to launch generative AI features in China. The rally was fueled by cooling inflation data and a strong bank earnings season.
Apple (AAPL) hit an all-time intraday high on July 15, closing at $327.50, up 4.01% from the prior session. The broader market rallied on cooling inflation and strong bank earnings, though semiconductor weakness weighed on Nasdaq futures.
- Apple (AAPL) closed at $327.50 on July 15, up 4.01% from the previous close of $314.86, after hitting an all-time intraday high of $328.73.[TradingView]
- June PPI fell 0.3% month-over-month, the largest decline in over a year and below expectations; the year-over-year increase was 5.5%, also below forecasts.[TradingView]
- Morgan Stanley (MS) and BlackRock (BLK) beat earnings estimates, extending the strong results from Goldman Sachs (GS) and Bank of America (BAC) earlier in the week.[TradingView]
- The iShares Semiconductor ETF (SOXX) fell over 2% on the day, as profit-taking followed the AI-driven rally.[TradingView]
- PayPal (PYPL) surged over 17% on reports that Stripe and Advent International had made a joint bid of over $53 billion to acquire the company.[TradingView]
- As of 12:30 AM ET on July 16, U.S. markets were closed for the holiday. In the prior session (July 15), the Dow gained 0.29% to 52,658.64, the S&P 500 rose 0.38% to 7,572.40, and the Nasdaq added 0.90% to 26,269.23.[TradingView]
All three major U.S. indices closed higher on Wednesday, July 15, as cooling inflation data and record bank earnings boosted risk appetite. Apple (AAPL) was the day's standout, hitting an all-time intraday high of $328.73 before closing at $327.50, up 4.01%. According to TradingView, the direct catalyst was a market report that Apple had received approval to launch generative AI features in China.[TradingView] However, as of 12:30 AM ET on July 16 (Beijing time 12:30 PM), U.S. markets were closed for the holiday, leaving Apple's price unchanged at $327.50.
Cooling Inflation Strengthens Rate-Cut Bets
The Bureau of Labor Statistics reported that the June Producer Price Index fell 0.3% month-over-month, the largest decline in over a year and below expectations; the year-over-year increase was 5.5%, also below forecasts.[TradingView] This followed the June Consumer Price Index released the day prior, which also came in below expectations, with the annual inflation rate falling to 3.5%, the first decline in five months.[Sharecast]
Allianz Chief Economic Advisor Mohamed El-Erian commented on X: "These much-better-than-expected data will boost equities and further temper market expectations of an imminent rate hike."[TradingView]
A Sharecast report further noted that June core CPI (excluding food and energy) slowed to 2.6% year-over-year, down from 2.9% in May and below the 2.8% consensus. On a monthly basis, core CPI was flat, compared to a 0.2% rise in May.[Sharecast] Falling energy prices were the main driver, with the year-over-year increase in gasoline prices narrowing sharply to 26.7% from 40.5% in May.[Sharecast]
Bank Earnings Shine Again; PayPal Bid Rumor Sparks Rally
Earnings season remained in focus. After Goldman Sachs (GS) and Bank of America (BAC) delivered beats on Tuesday, Morgan Stanley (MS) and BlackRock (BLK) also reported quarterly results that topped Wall Street expectations on Wednesday.[TradingView]
A Sharecast report detailed Tuesday's standout bank results: Bank of America's Q2 revenue (net of interest expense) was approximately $31.7 billion, up 15% YoY, with EPS of $1.21, above the $1.13 consensus; JPMorgan's equity trading revenue surged 86% to $6 billion, far exceeding the $2.11 billion estimate; Wells Fargo reported EPS of $2.00, above the $1.72 consensus; and Goldman Sachs' net profit jumped 78% YoY to $6.6 billion, or $21 per share.[Sharecast]
A major M&A rumor hit the fintech space. PayPal (PYPL) shares surged over 17% on July 15, following a report cited by TradingView that payments company Stripe and private equity firm Advent International had jointly made a bid of over $53 billion to acquire PayPal.[TradingView]
Semiconductors Lag; Geopolitical Risks Persist
Despite the broader market rally, the semiconductor sector underperformed. The iShares Semiconductor ETF (SOXX) fell over 2% on the day. TradingView attributed the decline to profit-taking following the strong AI-driven rally.[TradingView]
On the geopolitical front, tensions between the U.S. and Iran continued to escalate. U.S. Central Command stated on X that U.S. forces launched a second wave of strikes against Iran at 3:00 PM ET, targeting military capabilities used to threaten shipping in the Strait of Hormuz.[TradingView] This followed President Trump's announcement that he would reinstate a so-called "blockade" on Iranian shipping, which had sent oil prices sharply higher on Tuesday.[Sharecast]
Other Stock Moves and What's Ahead
In individual names, AST SpaceMobile (ASTS) shares plunged over 11% in after-hours trading after the company announced plans to raise $1 billion through a private placement of convertible preferred notes, sparking dilution concerns.[TradingView] Psychedelic drug developer AtaiBeckley (ATAI) surged over 56% after hours on a report that Eli Lilly (LLY) was close to a deal with the company, which could be announced as early as this week.[TradingView]
Looking ahead, markets will focus on Thursday's retail sales data, initial jobless claims, and the Philadelphia Fed manufacturing survey.[TradingView]
Sources
- TradingView — Dow, S&P 500 Futures Edge Higher As Record Bank Earnings, Cooling Inflation Lift Risk Appetite: ASTS, ATAI, AAPL, PYPL in Focus
- Sharecast — US open: Stocks edge higher as traders weigh CPI slowdown, bank earnings
- Stocktwits — S&P 500, Dow Edge Higher As Bank Earnings Offset Middle East Oil Concerns — AAPL, SKHY, ASML, PYPL In Focus
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