U.S. stock markets edged higher on Wednesday as investors assessed strong earnings results from major banks and the latest producer price index data.
Markets React to Bank Earnings
The Dow Jones Industrial Average rose by 140 points, while the S&P 500 was up by 0.16%. The Nasdaq Composite hovered around the flatline with a change of 0.04%. The uptick in indices came as investors evaluated earnings reports from banks such as 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, exceeding the expected $0.85.
Producer Price Index Data
Recent producer price index (PPI) data provided a positive signal for markets. U.S. June PPI rose 2.3% year-over-year, marking the lowest level since September 2024 and below the forecasted 2.5% increase. On a month-over-month basis, PPI was flat, also below the expected 0.20% gain.
Cryptocurrency and Gold Markets
Bitcoin saw a gradual rise after pulling back to $116,000 amid profit-taking from its previous run to $123,000. Gold remained steady against tariff-related concerns. Meanwhile, the bond market showed a muted reaction to the new data.
The positive producer price data and strong bank reports contributed to the rise in equity and cryptocurrency markets, indicating a potential easing of monetary policy in the future.
