Dow rises as Wall Street digests earnings, inflation data
U.S. stocks traded slightly higher on Wednesday as investors digested strong earnings results from major banks and the latest producer price index data.
The Dow Jones Industrial Average and S&P 500 were up 140 points and 0.16% respectively, while Nasdaq Composite hovered at the flatline with 0.04%.
Slight upticks in the blue-chip and benchmark indices came as investors assessed earnings reports from top banks, including Bank of America, JPMorgan, Morgan Stanley, and Goldman Sachs. Bank of America’s second-quarter report showed revenue of $26.5 billion and adjusted earnings per share of $0.89, beating expectations of $0.85.
Stocks,crypto up amid latest U.S. inflation data
Stocks had declined on Tuesday in reaction to inflation concerns and renewed tariff uncertainty. However, with investors navigating the latest tariff-driven jitters, Wall Street turned optimistic.
The uptick has been helped by the lower-than-expected producer price index data released on Wednesday.
U.S. June PPI rose 2.3% year over year, its lowest level since September 2024. This was below the forecasted 2.5% increase. On a month-over-month basis, PPI was flat, also below the expected 0.20% gain.
Slowing inflation often triggers positive moves in risk assets, as investors view such data as signaling a potential interest rate decline.
Bitcoin (BTC) also advanced after pulling back to $116,000 amid profit-taking from its recent run to $123,000. With “crypto week” underway, BTC edged higher again and was retesting resistance near $119,000.
Elsewhere, gold remained steady amid tariff-related sentiment, while the bond market showed a muted reaction.
“U.S. producer price inflation for June was softer than the consensus forecasts, with no monthly change for the headline and core measures. Annual inflation moderated to 2.3% and 2.6% respectively. [However] the immediate reaction of yields on US Treasury bonds is muted as markets are also noting the unusually large upward revision in the prior (May) estimates,” said top economist Mohamed El-Erian.
