With moderate wholesale prices, the three major indices close slightly higher...Oracle jumps 13% [New York Stock Market Briefing]

The three major indices on the New York Stock Exchange closed slightly higher. Following the consumer price index, a softer-than-expected producer price index led to bargain hunting by relieved investors. However, index gains were limited by ongoing tariff uncertainties between the US and major economies.

On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) closed at 42,967.62, up 101.85 points (0.24%) from the previous session. The S&P 500 index rose 23.02 points (0.38%) to 6,045.26, and the tech-heavy NASDAQ Composite Index finished 46.61 points (0.24%) higher at 19,662.48.

The inflow of buying is attributed to a softer-than-expected producer price index (PPI) for May, following the previously released consumer price index (CPI).

According to the U.S. Department of Labor, May's PPI, seasonally adjusted, rose 0.1% from the previous month, below market expectations of 0.2%. Core PPI, excluding food, energy, and trade services, also rose 0.1%, below the projected 0.3%.

There was analysis that the tariff shock from the Trump administration has yet to be fully reflected in goods and services prices. Still, with a moderate inflation rate, conditions have become more favorable for potential rate cuts.

According to the Chicago Mercantile Exchange (CME) FedWatch tool, the probability that the Federal Reserve will keep the base rate unchanged in July is reflected at 75.0%, down more than 6 percentage points from the previous day's 81.4%. The probability of a 0.75% point rate cut by December jumped from 24.8% to 28.0%.

However, stock gains were capped as President Trump continued to threaten major economies with tariffs.

President Trump stated regarding the extension possibility of the mutual tariff grace period: "At a certain point, (without negotiations with each country) I will simply send a letter," and added, "I cannot negotiate with all countries and about two weeks later will send letters to each, explaining contract terms as I did with the European Union (EU)."

Tom Heinlein, senior investment strategist at U.S. Bank Asset Management Group, noted, "There are many stories about negotiations, grace periods, and frameworks, but not a single trade agreement has been signed between the US and major trading partners," adding, "We still remain in a base scenario of uncertainty about how trade negotiations will proceed."

The ongoing deadlock in nuclear negotiations between the US and Iran also added to market jitters. As the possibility of Israel striking Iran's nuclear facilities emerged, the US government began protecting local staff, including partially withdrawing employees from its embassy in Iraq.

President Trump stated that, given the potential deterioration in the Middle East situation, he "sensed risk and ordered withdrawal."

By sector, technology and utilities rose by more than 1%.

Among the ‘Magnificent 7’ large technology firms, Microsoft, NVIDIA, Apple, and Amazon gained. Tesla, meanwhile, fell by more than 2% after a recent sharp rebound.

Cloud computing company Oracle soared more than 13% as its first-quarter results beat market expectations.

US aircraft manufacturer Boeing fell 5% after news that a Dreamliner passenger jet belonging to Air India crashed immediately after takeoff, killing all on board.

US video game retailer GameStop plunged 22.45% following its announcement of a $1.75 billion convertible bond issuance plan.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) rose 0.76 points (4.4%) to 18.02.

Sangsam Koh, Hankyung.com reporter jsk@hankyung.com