[April 14, 2026] Significant Rise in Tech Stocks Due to Easing Geopolitical Risks and Lower PPI

Good morning, this is Hal.

Yesterday, April 14, the U.S. stock market saw all major indices record strong gains, driven by a cooling of geopolitical tensions in the Middle East and a reduction in inflation concerns.

In particular, the NASDAQ Composite Index, which contains many technology companies, rose by approximately 2%, achieving its 10th consecutive day of gains, a streak not seen since 2021. The S&P 500 also recovered to levels nearing its all-time high, making it a day where a sense of relief spread throughout the market.

The Russell 2000 Index, which tracks small-cap stocks, also rose, confirming that capital is flowing into a wide range of stocks, not just a few mega-cap companies.

Today's Market Overview

All three major indices finished the trading session in positive territory, with the strength of technology stocks, in particular, leading the entire market.

• S&P 500 Index: 6,967.38 (+81.14 / +1.18%)

• Dow Jones Industrial Average: 48,535.99 (+317.74 / +0.66%)

• NASDAQ Composite Index: 23,639.08 (+455.35 / +1.96%)

The 'Three Protagonists' That Moved the Market

The following three factors improved market sentiment yesterday and shifted the flow of capital:

Expectations for ceasefire talks between the U.S. and Iran and the decline in crude oil prices

Following reports of the resumption of ceasefire talks in Pakistan, the risk of a disruption in crude oil supply has receded. This caused crude oil prices to fall, easing market anxiety.

Easing inflation concerns due to a decline in the Producer Price Index (PPI)

The March Producer Price Index, which was released, came in below market expectations, suggesting the possibility that inflation is stabilizing. This led to a decline in long-term interest rates, providing a tailwind for the stock market.

Focus on major bank earnings and net interest income

Earnings announcements, such as those from Wells Fargo, have begun, with attention focused on trends in Net Interest Income (NII), which indicates core profitability. There is also some cautious sentiment regarding the performance of the financial sector.

Hal's Perspective: Capital Movement Due to Lower Interest Rates and Easing Geopolitical Risks

What I focused on was the decline in interest rates due to receding inflation concerns and the clear movement of capital that accompanied it.

• Tailwind for growth stocks due to lower interest rates: With the March PPI coming in below expectations, the U.S. 10-year Treasury yield fell from 4.30% to 4.25%. When interest rates fall, the current value of high-tech stocks (growth stocks) that are expected to grow in the future is more easily highly valued. Additionally, because the cost of capital has decreased, capital has flowed strongly into technology companies that are actively making upfront investments in areas like AI.
  

• Capital shift from defensive assets to growth assets: With crude oil prices falling due to the easing of tensions in the Middle East, capital has flowed out of the energy sector, which had previously been bought for risk aversion. As investor sentiment has stabilized, a shift of funds from defensive stocks to technology stocks with growth potential, such as those related to AI, has been observed.

Stocks to Watch: Mixed Results Driven by AI Demand Expectations and Individual Challenges

[Gainers]

• Micron Technology (MU): +9.01%

  • The stock was heavily bought due to the decline in long-term interest rates and expectations for increased demand for high-performance memory semiconductors, which are essential for AI data processing.

• Oracle (ORCL): +4.74%

  • The company announced a contract to procure clean power from Bloom Energy for AI data centers, which was well-received as it eased concerns regarding power supply.

• Amazon.com (AMZN): +3.83%

  • The market reacted positively to the strategy of acquiring satellite internet company Globalstar for approximately $11.6 billion to strengthen AI cloud and space communication infrastructure.

[Losers]

• Wells Fargo (WFC): -5.00%

  • In its first-quarter earnings report, net interest income—derived from the difference between lending and deposit rates—fell short of market expectations, spreading concerns about future profitability.

• Newmont (NEM): -4.14%

  • It was sold off due to a decline in the price of gold, considered a safe-haven asset, amid hopes for ceasefire negotiations, as well as the announcement of forecasts for future production decreases and rising costs.

• Chevron (CVX): -3.15%

  • The stock was weighed down by a decline in crude oil prices due to receding geopolitical risks and challenges such as the risk of delays in ongoing large-scale projects.

Future Outlook: Confirming price trends and calm selection of companies

Moving forward, we need to confirm how the stabilization of the Producer Price Index (PPI) will actually be reflected in the consumer prices we see. There is also data suggesting that consumer purchasing behavior is becoming more selective, making it easier for a performance gap to widen between companies that provide clear value and those that do not. I believe it is important to quietly confirm the actual performance of companies one by one while keeping an eye on macroeconomic trends.

That is all from me, Hal.

An important request
This article is intended for informational purposes regarding U.S. stocks and does not recommend the buying or selling of any specific securities. Please make final investment decisions based on your own judgment and responsibility.