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Stocks stall, small-caps tumble on hot inflation print

Some fun in single stocks, a listless day for major indexes, and awful price action in small-caps.

Luke Kawa

A hotter-than-expected reading of July’s producer price index put stocks, and particularly small-caps, on the back foot to start the day.

The S&P 500 and Nasdaq 100 managed to bounce back, with the former closing marginally higher and the latter fractionally lower, while the Russell 2000 fell more than 1% on the day.

Healthcare and financials were the best-performing S&P 500 sector ETFs, while materials was at the bottom of the leaderboard with a decline of 1%.

Amazon continued to be a standout positive performer among megacaps, with analysts applauding its expansion into free same-day grocery delivery nationwide for Prime members.

Palantir dipped as Andrew Left, head of short-selling firm Citron Research, said he was betting against the company in light of its lofty valuation.

CoreWeave tanked 15% ahead of its lockup expiry, which allows major shareholders to begin potentially taking profits following the IPO as of now.

Bumble also cratered 15% after two major shareholders — Blackstone and the dating app’s founder and CEO, Whitney Wolfe Herd — announced that they were selling what amounted to roughly one-fifth of shares outstanding.

Intel popped late in the day on a Bloomberg report that the Trump administration was mulling the potential for the government to take a position in the embattled chip company.

TeraWulf posted a massive gain, up nearly 60%, after announcing multibillion-dollar AI hosting deals and news that Alphabet would acquire an 8% stake in the company.

Chinese gaming company NetEase slumped almost 4% after posting underwhelming second-quarter earnings.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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