Stock Market Today, July 14: Growth Stocks Rally as Inflation Cools to 3.5%, Equaling 2020 Lows
2026-07-14 18:27
•Josh Kohn-Lindquist •The Motley Fool
•••••••• ••••••••••••••••••••••••••••••••••••• Axe Capital view
Growth Stocks Bounce as Inflation Drops to 3.5%
US inflation cooling sparks optimism, with clear but mixed signals for South African markets.
The US inflation rate hitting 3.5%, a level not seen since 2020, has reignited appetite for growth stocks globally. This usually signals lower interest rates ahead, which helps tech and other high-growth companies. While the Nasdaq’s 1% gain shows that enthusiasm, there's caution to be had. IBM’s dramatic 24% drop after its earnings warning reveals that not all tech is created equal—legacy firms with heavy capital needs could still struggle. For South African investors, the direct impact is muted since our tech heavyweights like Naspers and Prosus have more exposure to global digital economies rather than US hardware cycles. However, a stable or easing inflation backdrop in the US usually keeps the rand supported, helping local banks like Standard Bank and FirstRand that benefit from more stable credit conditions. Traders should watch USD/ZAR closely—if the rand strengthens materially amid global calm, it could pressure exporters including resource stocks. The main risk? Inflation could easily overshoot again if supply chains or geopolitical tensions flare, putting the brakes on growth optimism. this is just my opinion and not financial advice
Trim exposure to local resource exporters sensitive to rand strength and hold banks cautiously, while waiting on Naspers and Prosus to show clearer catalysts tied to global tech spending. Keep a close eye on USD/ZAR moves as your signal.
- USD/ZAR
- Standard Bank
- FirstRand
- Naspers
- Prosus
- Inflation unexpectedly rises again
- Rand weakens sharply due to global risk-off
6/10
U.S. stock markets rallied on July 14, 2026, as inflation cooled to 3.5%, matching 2020 lows and boosting growth stocks. The Nasdaq Composite rose 1.06%, while the S&P 500 gained 0.49%. IBM plunged 24% on earnings concerns, while CleanSpark and Tower Semiconductor surged on major infrastructure and expansion announcements. Banking stocks showed mixed results as earnings season began.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Josh Kohn-Lindquist
Categories: Macro, Inflation, Equities, Earnings, M&A, Technology, AI, Semiconductors
Tickers: IBM, CLSK, CLSKW, TSEM, AMJB, JPM, JPMPC, JPMPD, JPMPJ, JPMPK, JPMPL, JPMPM, VYLD, BAC, BACPB, BACPE, BACPK, BACPL, BACPM, BACPN, BACPO, BACPP, BACPQ, BACPS, BMLPG, BMLPH, BMLPJ, BMLPL, MERPK, WFC, WFCPA, WFCPC, WFCPD, WFCPL, WFCPY, WFCPZ, WBD
Sentiment: Mixed - Stock plunged 24% following a preliminary second-quarter earnings warning about capital expenditure squeeze for memory, indicating significant operational challenges. Stock jumped 15% after securing a $6.6 billion infrastructure lease with potential to grow to $11.6 billion, demonstrating strong business expansion.
Keywords: inflation, growth stocks, earnings season, tech rebound, semiconductor, banking stocks
Insights:
- IBM: Negative: Stock plunged 24% following a preliminary second-quarter earnings warning about capital expenditure squeeze for memory, indicating significant operational challenges.
- CLSK: Positive: Stock jumped 15% after securing a $6.6 billion infrastructure lease with potential to grow to $11.6 billion, demonstrating strong business expansion.
- CLSKW: Positive: Stock jumped 15% after securing a $6.6 billion infrastructure lease with potential to grow to $11.6 billion, demonstrating strong business expansion.