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U.S. stocks edged higher in today’s session as investors weighed strong corporate results against rising oil prices and cooling inflation data — a mix that narrowed the odds of another Federal Reserve rate increase and left benchmarks trading near recent peaks. The market’s direction now hinges on whether companies can sustain the earnings momentum that has helped lift prices close to record levels.
Markets at a glance
The S&P 500 advanced about 0.4%, putting it less than half a percent below the high reached last month. The Dow Jones Industrial Average added roughly 150 points, while the Nasdaq rose around 0.6%.
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Earnings drove the tone — winners and losers
Financial and industrial reports supplied much of the upward push. Asset manager BlackRock led major gainers after posting better-than-expected revenue and profit, sending its shares up more than 6%. CEO Laurence Fink said the firm’s iShares ETF business surpassed $6 trillion in assets, a notable expansion over the past three years.
Other corporate standouts included Bank of New York Mellon and workwear and facilities supplier Cintas, both rising on quarterly results that beat analyst forecasts. Not every report was rewarded: health insurer Elevance Health fell sharply despite reporting results above expectations.
Why this matters: With major indexes hovering near their highs, companies will need to continue topping forecasts to justify lofty valuations.
Inflation readings cool Fed expectations
New data showed wholesale inflation eased to 5.5% from 6.0% the prior month — a softer outcome than economists had anticipated. A separate report released earlier also suggested consumer-level inflation moderated more than expected.
Those figures quickly shifted market pricing: futures traders cut the chance of a Fed rate increase at the next meeting to roughly 10%, down from about 42% before the inflation news, according to CME Group data. New York Fed President John Williams remarked there are “encouraging reasons” to think inflation has peaked and could decline in coming quarters, comments that further tempered hawkish expectations.
The yield on the 10-year Treasury dipped to about 4.55% from around 4.58% the previous session.
Commodities and geopolitics
While inflation data eased, geopolitical tensions added a countervailing force. Ongoing U.S.-Iran exchanges in the Middle East pushed oil prices higher: Brent crude briefly topped $86 per barrel before settling near $84.95, a small gain on the day. That upward pressure on energy costs remains a wildcard for inflation trends.
Global markets and the AI debate
Markets overseas were mixed. South Korea’s Kospi jumped more than 6% in a volatile session dominated by swings in large technology names tied to the artificial-intelligence rally. Semiconductor-equipment maker ASML reported revenue and a near-term sales outlook that beat forecasts; its Amsterdam shares slipped slightly while its U.S.-listed shares rose over 2%.
In Asia, Hong Kong stocks rose and Shanghai ticked down after China’s economy expanded at a 4.3% annualized pace in the most recent quarter, slower than growth earlier in the year.
Key takeaways for investors
- Markets are fragile around record levels: Indexes need consistent earnings beats to maintain gains.
- Inflation momentum is easing: Softer wholesale and consumer inflation lowered the likelihood of an immediate Fed hike.
- Energy and geopolitics remain risks: Oil gains tied to Middle East tensions could reintroduce inflation pressure.
- AI-driven volatility persists: Big moves in semiconductor and AI-related stocks make headline risk higher for global markets.
Investors will be watching upcoming corporate reports and any new geopolitical developments closely — both will influence whether the recent calm holds or gives way to renewed volatility.
