Tech Stocks Lift US Markets as Oil Falls, PPI Cools

U.S. stock indexes rose Tuesday, led by technology companies and chipmakers, after crude oil prices fell and wholesale inflation data came in softer than expected. The Nasdaq outperformed as investors moved into large-cap tech names and semiconductor firms, helping lift the S&P 500.

Oil futures slipped following reports of constructive diplomatic exchanges involving Iran that market participants said reduced the near-term risk of supply disruption. Lower crude prices weighed on energy shares, which lagged the broader market.

The Labor Department’s producer price index showed wholesale inflation growing more slowly than in recent months and below economists’ consensus. The PPI measures prices received by domestic producers for goods and services and is tracked as an early indicator of consumer inflation trends.

Trading reflected the combination of the softer PPI print and the drop in oil. Treasury yields fell and the dollar weakened on the data and market developments, and investors reallocated toward growth-oriented stocks, with megacap tech and chipmakers posting some of the largest gains. Utilities and consumer staples recorded modest advances while parts of the financial sector underperformed.

A market strategist at a U.S. investment firm observed, “Investors are responding to cooler wholesale inflation and reduced geopolitical risk around Iran,” and added that those factors made growth stocks more attractive in the near term.

Looking ahead, market participants said attention will focus on upcoming consumer inflation readings, Federal Reserve commentary and any new developments in diplomatic talks that could affect oil supply. Corporate earnings and the pace of economic data releases will shape whether the tech-led gains extend to other sectors.