NEW YORK — U.S. stocks ended higher Wednesday as fresh evidence of easing inflation and another round of solid corporate earnings outweighed concerns over rising tensions in the Middle East, extending a rally that has pushed the major indexes closer to record territory.
The Dow Jones Industrial Average added 150.41 points, or 0.29%, to 52,658.64. The S&P 500 climbed 28.81 points, or 0.38%, to 7,572.40, while the Nasdaq Composite advanced 161.95 points, or 0.62%, closing at 26,269.23. The Russell 2000 gained 0.4%.
The day’s buying followed a second consecutive inflation report that came in cooler than investors expected. The June Producer Price Index unexpectedly declined after Tuesday’s softer Consumer Price Index report, reinforcing expectations that inflation is continuing to moderate.
The reports prompted investors to further scale back bets that the Federal Reserve will raise interest rates at its next policy meeting. Treasury yields fell after the data, easing pressure on equities and particularly benefiting large technology companies whose valuations are sensitive to borrowing costs.
The market’s advance was broad but selective.
Financial shares gained after another strong round of quarterly earnings.
BlackRock reported higher-than-expected profit as assets under management continued to expand, while Morgan Stanley posted results that reflected resilient investment banking activity and healthy trading revenue. The reports suggested that large financial institutions continue to benefit from active capital markets despite elevated interest rates.
Technology shares again provided leadership.
Apple, Microsoft, Alphabet, and Amazon all finished higher, helping lift the Nasdaq Composite. Semiconductor stocks were mixed as investors continued rotating toward companies viewed as direct beneficiaries of long-term artificial intelligence spending while trimming positions in parts of the broader chip sector.
One of the session’s largest individual gainers was PayPal Holdings Inc., whose shares jumped following reports that Stripe and private-equity firm Advent International have submitted a takeover proposal valuing the payments company at more than $53 billion. The potential acquisition would rank among the largest technology transactions of the year if completed.
Outside equities, investors continued watching developments in the Middle East. Oil prices remained elevated as traders assessed the potential impact of renewed tensions involving Iran on global energy supplies. Even so, the inflation data and earnings reports proved more influential than geopolitical headlines during Wednesday’s session.
Markets now enter the heart of earnings season with investors looking for confirmation that corporate profits remain resilient despite higher borrowing costs and slower global growth. Additional results from major financial institutions, industrial companies and technology firms are expected over the coming days.
Attention also remains fixed on the Federal Reserve. While policymakers have emphasized they will remain dependent on incoming economic data, two consecutive inflation reports showing easing price pressures have strengthened expectations that interest rates may remain unchanged at the central bank’s upcoming meeting.
For investors, Wednesday’s trading reflected a familiar theme that has driven markets in recent weeks: signs of moderating inflation continue to support equities as long as corporate earnings remain healthy enough to sustain economic growth.
Market Close
- Dow Jones Industrial Average: 52,658.64 (+150.41, +0.29%)
- S&P 500: 7,572.40 (+28.81, +0.38%)
- Nasdaq Composite: 26,269.23 (+161.95, +0.62%)
- Russell 2000: 2,976.26 (+0.4%)
JBizNews Desk | New York
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