Nasdaq Forecast: NDX Extends Gains After Cooler PPI
2026-07-15 13:35
•Fiona Cincotta •Investing.com
••••••••• ••••••••••••••• Axe Capital view
Nasdaq Gains and What It Means for the Rand
Cooler US inflation data fuels optimism but rising oil prices threaten to unsettle the rand.
US producer price inflation eased unexpectedly in May, helping tech-heavy Nasdaq futures climb and knocking back aggressive rate hike bets from the Fed. This is positive for growth assets and has generally improved risk appetite. For South Africa, a softer US inflation outlook usually bodes well for the rand, as it reduces the likelihood of sharp Fed hikes that could strengthen the dollar further. However, a dash of caution is warranted with oil prices ticking higher due to US-Iran tensions. Higher fuel costs have an outsized impact here by worsening the current account and adding pressure to inflation, potentially forcing the SARB to keep rates high. Locally, Sasol, as our main energy-related play, stands to benefit from rising oil, but broader consumer stocks like Shoprite or Capitec could feel the pinch if fuel squeezes spending. I’d watch the USD/ZAR closely alongside Sasol earnings in the near term. This view could be wrong if geopolitical tensions escalate quickly or if US inflation data reverses sharply. this is just my opinion and not financial advice
Hold Sasol for now to play rising oil but be ready to trim if rand weakness spills over into broader consumer pockets. Keep an eye on USD/ZAR movements for entry points in financials tied to domestic growth.
- Sasol
- USD/ZAR
- escalating US-Iran tensions driving oil sharply higher
- US inflation data reversing and reviving Fed rate hike fears
7/10
U.S. stocks extended gains following cooler-than-expected producer price inflation data, with PPI falling 0.3% monthly and 5.5% year-over-year. The Nasdaq futures rose 0.68% as markets scaled back Fed rate hike expectations. However, rising oil prices due to U.S.-Iran tensions pose inflation risks. Key movers included ASML gaining 3% on strong earnings, IBM tumbling 25% on profit warnings, Morgan Stanley up 1.5% on record results, and BlackRock rising 4% on better-than-expected earnings.
This article was originally published by Investing.com and has been adapted here for Axe Capital Trading News.
Publisher: Investing.com
Author: Fiona Cincotta
Categories: Macro, Central Banks, Inflation, Equities, Earnings, Commodities, Technology, AI, Semiconductors
Tickers: ASML, IBM, MS, MSPA, MSPE, MSPF, MSPI, MSPK, MSPL, MSPO, MSPP, MSPQ, JNJ, BLK, DIVB
Sentiment: Mixed - Stock rose 3% after posting quarterly results that beat expectations and raising full-year guidance, supported by continued strength in AI-related demand. Stock tumbled 25% in one of its worst sessions on record following a profit warning, as customers redirected spending away from software towards AI infrastructure and memory hardware.
Keywords: producer price inflation, PPI, Nasdaq, Federal Reserve, oil prices, U.S.-Iran tensions, earnings, inflation cooling
Insights:
- ASML: Positive: Stock rose 3% after posting quarterly results that beat expectations and raising full-year guidance, supported by continued strength in AI-related demand.
- IBM: Negative: Stock tumbled 25% in one of its worst sessions on record following a profit warning, as customers redirected spending away from software towards AI infrastructure and memory hardware.
- MS: Positive: Stock up 1.5% after reporting record quarterly revenue and profit with EPS of $3.46, comfortably ahead of expectations for $2.94.