US stocks traded slightly higher on Wednesday as investors digested strong revenue results from major banks and latest producer price index data.
The Dow Jones Industrial Average and the S&P 500 each rose 140 points, an increase of 0.16%, while the Nasdaq Composite hovered to the flatline at 0.04%.
A slight increase in blue chips and benchmark indexes came as investors evaluated revenue 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, surpassing expectations of $0.85.
Stocks encrypted in latest US inflation data
Stocks fell on Tuesday in response to inflation concerns, updating tariff uncertainty. But Wall Street has become optimistic as investors navigate the latest tariff-driven unrest.
read more: Dow Jones dropped 300 points on CPI data and made NVIDIA Stock Lift Nasdaq China News
The rise was helped by lower than expected producer price index data released Wednesday.
The US June PPI rose 2.3% year-on-year, the lowest level since September 2024. This was below the projected 2.5% increase. For a month, the PPI was flat, below the expected 0.20% gain.
Slowing inflation often causes positive movements in risky assets as investors look at such data, such as signaling potential interest rate drops.
Bitcoin (BTC) has continued to move forward after returning to $116,000 and back to $123,000 amid profits from its recent run. “Crypto Week” was underway, and BTC was rising again, retesting its resistance of nearly $119,000.
Elsewhere, gold remained stable amid tariff-related sentiment, but the bond market responded calmly.
“US producer price inflation in June did not change monthly in headline and core measurements. Annual inflation was eased to 2.3% and 2.6%, respectively. (However) the immediate response to US bond yields is being stunned by an unusually large rise in the market.
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