US stock markets moved closer to record highs on Wednesday, boosted by lower-than-expected inflation data and strong bank results.
The S&P 500 rose by 0.2%, the Dow Jones went up 170 points (0.4%), and the Nasdaq stayed near its recent high.
What’s Driving the Market Up?
A new report showed that wholesale prices in June increased less than expected. This gave investors hope that the Federal Reserve (Fed) might start cutting interest rates later this year. Lower inflation also caused US Treasury yields to drop, which is good news for the market.
Strong Earnings from Major Companies
- PNC Financial Services jumped 1.7% after reporting good quarterly results.
- Bank of America and Goldman Sachs also rose over 0.5% after beating profit estimates.
- Johnson & Johnson surged 4.1% after it beat its sales and profit targets and raised its yearly outlook. The company said it expects big approvals for new cancer treatments.
One Big Loser: ASML
While many stocks went up, ASML, a major chip equipment company, fell 9.7%. The company warned that it might not grow next year due to geopolitical tensions and tariffs.
Read more: Trade Deal: India Cautious About Trump’s New Trade Tariffs, Waiting to See Impact
Global News: Indonesia Gets Tariff Relief
Overseas, Indonesia’s stock market rose 0.7% after President Trump reduced tariffs on Indonesian goods. The Indonesian central bank also cut interest rates to support the economy. President Prabowo Subianto said protecting the country’s workers is his top priority.
Also See: Market Recap: Nifty Holds Ground at 25,212; M&M, Infosys Among Top Movers
What’s Next for Interest Rates?
The 10-year US Treasury yield fell to 4.46% from 4.50%, showing that investors believe the Fed might soon cut rates.
However, Fed Chair Jerome Powell is being cautious and said the central bank needs more information about how tariffs are affecting inflation before making any moves.
