Wall Street Nears Record Highs as Inflation Eases/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks inched higher Wednesday as cooler-than-expected inflation data calmed Wall Street’s nerves. The S&P 500 approached its record high amid falling Treasury yields and solid bank earnings. Yet, uncertainty lingers over Trump’s tariffs and global trade tensions.
Quick Looks
- S&P 500 edges toward new record
- Dow up 170 points in early trading
- Nasdaq hovers near Tuesday’s all-time high
- Wholesale inflation lower than economists expected
- ASML shares plunge 9.7% amid tariff concerns
- PNC, BofA, Goldman Sachs beat profit estimates
- J&J jumps 4.1% on strong results, new drug hopes
- Fed may resume rate cuts if inflation stays tame
Deep Look
US Stocks Climb Toward Records as Inflation Data Calms Wall Street
NEW YORK (AP) — U.S. stock markets advanced on Wednesday, moving closer to record highs after new inflation data offered Wall Street hope that price pressures may be easing despite President Donald Trump’s aggressive trade policies.
The S&P 500 rose 0.2% in early trading, nearing the all-time high it reached last week. The Dow Jones Industrial Average climbed 170 points, or 0.4%, while the Nasdaq composite hovered near Tuesday’s record close.
Inflation Relief Sparks Optimism
Investors cheered a report showing U.S. wholesale inflation remained flat in June, defying forecasts of a small increase. The data helped offset concerns from Tuesday’s report indicating that Trump’s sweeping tariffs are pushing up consumer costs for goods such as toys, clothing, and home appliances.
The easing inflation readings sent Treasury yields lower. The yield on the 10-year U.S. Treasury fell to 4.46% from 4.50% late Tuesday, signaling bond investors are increasingly betting that the Federal Reserve could cut interest rates later this year.
“Wednesday’s data gives the Fed more breathing room,” said Bradley Saunders of Capital Economics. “But the path forward is still clouded by trade policy uncertainties.”
ASML Warns of Tariff Trouble
Yet not all the day’s news was bullish. Dutch chip equipment maker ASML saw its U.S.-traded shares sink 9.7% after warning it might not achieve sales growth next year due to rising macroeconomic and geopolitical risks—including tariffs. CEO Christophe Fouquet said while demand remains strong from artificial intelligence customers, “the level of uncertainty is increasing.”
Banks, J&J Lead Gainers
Offsetting tech-sector weakness were robust earnings from major U.S. banks. PNC Financial Services rose 1.7% after reporting better-than-expected quarterly profits, buoyed by loan growth. Bank of America and Goldman Sachs gained at least 0.5% each on stronger profits.
Johnson & Johnson also jumped 4.1% after the healthcare giant surpassed Wall Street’s forecasts and raised its full-year outlook, citing upcoming drug approvals for lung and bladder cancer treatments.
CEO Joaquin Duato said the company anticipates “game-changing approvals and submissions” in the second half of 2025.
Global Markets React to Tariffs, Rate Cuts
In global trading, markets were mixed. Indonesian stocks rose 0.7% after Trump announced he would impose a 19% tariff on goods from Indonesia—lower than the 32% he had previously threatened. Indonesia’s central bank also cut its benchmark interest rate by 0.25 percentage points to 5.25% in a move aimed at stimulating the economy.
President Prabowo Subianto said, “The most important thing for me is my people. I must protect the interests of our workers.”
Fed Policy Still in Focus
Wall Street continues to watch the Federal Reserve closely. Lower interest rates typically boost stock prices by making borrowing cheaper and lifting asset values. However, the Fed has kept rates steady this year amid uncertainty about how tariffs might feed inflation.
Fed Chair Jerome Powell has reiterated that more data is needed before policymakers commit to further rate cuts.
For now, Wednesday’s encouraging inflation report offered investors some relief—and pushed U.S. markets a step closer to fresh record highs.
You must Register or Login to post a comment.