Dominating AI Earnings and Moderating Inflation Create a Strong Market Omen

Taiwan Semiconductor Manufacturing (TSM) reported record June sales of $13.99 billion, up 67.9%, signaling strong momentum for AI and data center stocks heading into earnings season. Meanwhile, wholesale inflation is moderating with the Producer Price Index declining 0.3% in June and the Consumer Price Index posting its first decline since 2020, reducing expectations for further Fed rate hikes.