On Wednesday, U.S. stock markets experienced gains, with the S&P 500 increasing by 0.3%, the Nasdaq edging up by 0.1%, and the Dow Jones climbing by nearly 180 points. Investor sentiment was buoyed by a producer price index (PPI) report that was less aggressive than anticipated, alongside a keen focus on the recent spate of corporate earnings reports. In June, U.S. producer prices remained stable, contrary to the anticipated marginal rise. This was primarily attributed to a reduction in service costs, reinforcing market optimism that the Federal Reserve might consider reducing interest rates later in the year.
On the corporate earnings front, Bank of America's shares saw a 0.5% increase following the company's earnings report, which surpassed expectations, although its revenue slightly missed the mark. Goldman Sachs also saw a modest rise of 0.2% after announcing a surge in profits. In contrast, Morgan Stanley's shares declined by 2.2%, despite its better-than-expected performance in the second quarter. Meanwhile, Johnson & Johnson shares soared by 4.7% as the company not only exceeded earnings forecasts but also raised its outlook for the full year.
