Tech Drives U.S. Stocks Up; Oil Falls; PPI Rises Less

U.S. stock indexes rose in New York trading as technology shares led gains, oil prices fell after reports of progress in talks involving Iran, and the Labor Department reported a smaller-than-expected rise in wholesale prices for the latest month.

Large-cap technology companies pushed the S&P 500 and Nasdaq higher after several firms posted strong revenue and profit results. Investor interest in artificial intelligence applications was cited as a factor behind demand for growth-oriented tech names.

Energy stocks weighed on the market as crude oil futures retreated following reports that negotiators made tentative progress on issues tied to Iran’s nuclear program and regional activities. Traders reduced parts of the geopolitical risk premium that had been built into oil prices.

The Labor Department’s producer price index for the latest month showed wholesale prices increased by less than economists had forecast. The PPI measures price changes before they reach consumers and is monitored by economists and policymakers for signs of inflation pressure.

Treasury yields moved modestly after the inflation data, reflecting an adjustment to near-term interest-rate expectations. Market participants said the softer wholesale reading reduced some pressure on forecasts for additional rate increases while they continued to monitor other inflation measures.

Several technology companies reporting results cited strong sales and provided optimistic guidance, which supported a rotation into tech stocks. Market participants also observed that lower input costs at the wholesale level could help margins for manufacturers and retailers if those savings travel along supply chains.

Oil markets reacted to reduced near-term supply concerns after officials and diplomats described progress on specific negotiation points with Iran. At the same time, softer demand signals from certain economic indicators contributed to the pullback in crude futures. Analysts noted that progress in talks does not guarantee a durable change to global supply conditions.

Investors said they will watch upcoming economic releases and a full slate of corporate earnings for additional information on growth, inflation and corporate profitability. Broader market direction will depend on how future inflation readings and central bank guidance align.