US Stocks End Two-Day Slide as Chipmaker Gains Offset Inflation Data

US stocks edged higher on Thursday, ending a two-day slide, as gains in chip bellwethers helped offset renewed worries about inflation and geopolitics. The move came as investors weighed a hotter-than-expected U.S. producer-price report and developments in the Middle East, while futures had already pointed to a firmer open after the latest U.S. strikes against Iran ended quickly, according to Bloomberg.

Chipmakers were among the main supports for the market, with investors focusing on large semiconductor names that often set the tone for the broader technology sector. Bloomberg’s market coverage said the rise in chip bellwethers helped the major indexes recover modestly after two straight sessions of declines, underscoring how closely traders remain tied to the outlook for artificial intelligence spending and the semiconductor supply chain.

The inflation data added another layer of caution. A report showed U.S. producer prices increased at the fastest pace in more than three years, a sign that price pressures remain sticky even as investors continue to anticipate changes in Federal Reserve policy. That combination of stronger inflation and fresh geopolitical tension kept gains in check, even as the market avoided a deeper selloff, according to Bloomberg.

Individual stock moves also reflected the day’s crosscurrents. Oracle fell sharply after reporting quarterly capital spending that topped estimates, with Bloomberg saying the company now expects about $70 billion in net capital expenditures in the current fiscal year, which ends in May 2027. The reaction highlighted investor concern that heavy data-center investment may be squeezing profitability in the AI infrastructure trade. Fast Company also reported that Oracle’s stock dropped more than 10% in premarket trading after the company’s cloud results failed to satisfy investors.

Other names moved for company-specific reasons. Bloomberg reported that Hugo Boss rallied after Frasers Group offered to buy the rest of the German fashion company for about €2 billion, while Stitch Fix also gained. In separate stock-movers coverage, Bloomberg noted additional attention on Intel and other technology-related shares, reflecting the market’s broad focus on semiconductors and software after a recent rally in the sector had begun to fade.

The broader backdrop remains unsettled for traders. Bloomberg’s technology reporting said some investors are bracing for more volatility in software stocks as concerns linger about artificial intelligence disruption, suggesting that this week’s modest rebound may not mark a lasting change in sentiment. For now, the market’s direction appears to hinge on whether strong chip demand can outweigh worries about inflation, war risk and the cost of building out the data centers that power the AI boom.