Memory chip stocks plunged mid-session, wiping out Nasdaq and S&P 500 gains despite softer-than-expected wholesale inflation data.
U.S. markets opened higher after June wholesale prices fell 0.3%, the first decline since August 2025, defying expectations for no change. The report followed cooler consumer inflation data, prompting traders to cut July rate hike odds from 42% to 17%.
The Nasdaq Composite climbed as much as 0.8% before reversing to a 0.28% gain by midday, while the S&P 500 slipped from a 0.4% peak to 0.1%. The Dow Jones held steady at 0.3%, down from a 0.5% high. Semiconductor stocks led the decline, with SK Hynix dropping 13.2% and Micron falling 9.4% on concerns over rising Chinese competition.
Nvidia and AMD also retreated, down 2.2% and 6.4%, respectively. The $53 billion sector swing overshadowed optimism from New York Fed President John Williams, who suggested inflation may have peaked.