4:15pm: Apple surges, inflation cools
Stocks finished higher on Wednesday as another softer-than-expected inflation report reinforced expectations that the Federal Reserve could keep interest rates on hold in the months ahead.
The Dow Jones rose 150 points, or 0.3%, while the S&P 500 gained 0.4% and the Nasdaq climbed 0.6%.
Investors welcomed June's Producer Price Index report, which showed wholesale prices fell 0.3% during the month, adding to optimism after Tuesday's cooler consumer inflation data.
Apple was a standout performer, rising 4% to a record closing high of $327.50. The rally followed reports that the iPhone maker received approval to roll out its generative AI features in China, a key market for the company.
Investors also looked ahead to a fresh round of earnings. United Airlines is set to report results after the closing bell, while Thursday's earnings calendar includes Taiwan Semiconductor Manufacturing (TSMC), UnitedHealth Group, GE Aerospace and Abbott Laboratories (NYSE:ABT), giving investors another read on corporate performance and the health of key sectors of the economy.
3:40pm: Proactive news headlines
- Purepoint Uranium Group Inc (TSX-V:PTU, OTCQX:PTUUF, FRA:P5X0) CEO Chris Frostad said Canada and the United States must address growing uranium supply challenges as nuclear expansion plans accelerate and geopolitical tensions reshape global supply chains.
- VivoPower PLC (NASDAQ:VIVO, FRA:51J) said the limited availability of power-secured, renewable-backed sites is becoming a key constraint for AI infrastructure growth and is positioning its platform to meet rising demand across multiple markets.
- Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) announced that lithium carbonate from its Nevada-based Angel Island project was converted into high-purity lithium metal and used in battery cells through a US Army-backed research program.
- American Resources Corp (NASDAQ:AREC)’ ReElement Technologies was selected as an industry partner in a National Science Foundation-backed critical minerals consortium eligible for up to $160 million in funding over 10 years.
- BioHarvest Sciences Inc (NASDAQ:BHST, FRA:8MV0) received a $1.4 million grant from the Israel Innovation Authority to support research using machine learning and computer vision to advance its plant cell culture technology.
- Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF, FRA:1SS) launched an enterprise pilot program for KraftyLab Intelligence, an AI-powered workforce analytics platform designed to help organizations collect employee feedback and generate workplace insights.
- Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) reported high-grade near-surface copper mineralization from drilling at its Lion Zone within Quebec’s Nisk polymetallic project as it advances toward an initial NI 43-101 mineral resource estimate.
2:45pm: Market movers
- Dell Technologies Inc (NASDAQ:DELL) fell as investors worried that Meta’s plans to lease excess AI computing capacity could signal overbuilding among cloud providers and weigh on future server demand.
- Aehr Test Systems surged after the semiconductor testing equipment maker posted better-than-expected fiscal fourth-quarter results and issued a stronger revenue outlook for fiscal 2027.
- Century Lithium Corp. (TSX-V:LCE, OTCQX:CYDVF) said lithium carbonate from its Nevada-based Angel Island project was converted into high-purity lithium metal and used in battery cells through a US Army-backed research program.
- BlackRock Inc (NYSE:BLK) reported stronger-than-expected second-quarter earnings as record client inflows and higher fees boosted profits at the world’s largest asset manager.
- ASML Holding NV (NASDAQ:ASML, XETRA:ASME) gained after the semiconductor equipment maker beat second-quarter expectations and raised its full-year 2026 revenue forecast on stronger demand.
- American Resources Corp (NASDAQ:AREC)’ ReElement Technologies was selected as an industry partner in a National Science Foundation-backed critical minerals consortium eligible for up to $160 million in funding over 10 years.
- BioHarvest Sciences Inc (NASDAQ:BHST, FRA:8MV0) received a $1.4 million grant from the Israel Innovation Authority to support research using machine learning and computer vision to advance its plant cell culture technology.
2:10pm: BoC holds rates
North of the border, the Bank of Canada kept its benchmark interest rate unchanged at 2.25%, marking its sixth straight meeting without a policy change.
The bank said improving economic conditions and inflation gradually moving back toward target support holding rates steady, while geopolitical and trade uncertainties remain elevated.
Bank of America noted the BoC’s guidance remains cautious and data dependent, with policymakers balancing weak economic growth against inflation that remains above target. The firm expects the central bank to remain on hold through 2026, citing soft underlying activity, persistent excess supply and core inflation near 2%. While risks to rates are tilted slightly higher as the economy recovers, BofA said the bar for a hike remains high.
1:15pm: PPI offers fresh relief
Bill Adams, chief economist at Fifth Third Bancorp (NASDAQ:FITB), said the latest Producer Price Index (PPI) report was notable less for the headline numbers and more for the downward revisions to inflation in recent months.
While Consumer Price Index (CPI) data isn't revised after it's released, those lower PPI revisions could feed into future revisions to the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, suggesting inflation may have been softer than previously thought.
That PCE inflation could be revised down a bit for April and May, Adams noted.
"The Fed will likely see June’s cool inflation as a justification for holding interest rates steady at the decision near the end of this month," he commented.
"Even so, it’s hard to feel too excited about last month’s drop in producer prices, which largely reflected lower energy prices—prices which rebounded in the first half of July as energy traffic through the Strait of Hormuz slowed."
12:05pm: More impressive bank earnings
Morgan Stanley (NYSE:MS) (Morgan Stanley (NYSE:MS)) reported record second quarter revenue and profit that topped Wall Street expectations on Wednesday, driven by strength across its institutional securities, wealth management and investment management businesses.
The bank posted earnings per diluted share of $3.46 on net revenue of $21.35 billion for the quarter ended June 30, exceeding analysts' expectations of $2.93 per share on revenue of $19.63 billion. A year earlier, Morgan Stanley (NYSE:MS) (Morgan Stanley (NYSE:MS)) reported earnings per share of $2.13 on revenue of $16.79 billion.
Elsewhere, BlackRock Inc (NYSE:BLK) (BlackRock Inc (NYSE:BLK)) reported second-quarter profit that topped Wall Street estimates on Wednesday, powered by record inflows and higher fees.
The world's largest asset manager posted adjusted earnings of $13.91 per share, beating the average analyst estimate of $12.57 and up 15% from a year earlier.
Revenue rose 31% to $7.08 billion, ahead of the $6.72 billion expected by analysts.
11:00am: PPI slows
US producer prices unexpectedly declined in June, adding to signs that inflation pressures are easing and strengthening expectations that the Federal Reserve could begin cutting interest rates in the coming months.
The Producer Price Index (PPI) fell 0.3% month over month, compared with expectations for no change, while annual producer inflation slowed to 5.5% from the expected 6.2%.
Core PPI, which excludes food and energy, rose 0.2% on the month, below forecasts of 0.3%, while the annual core rate eased to 4.7%, also coming in below the expected 5.1%.
10am: PayPal and BlackRock lead Wall St higher at open
Wall Street has opened Wednesday trading on the front foot, with investors digesting more earnings.
The Nasdaq has added 0.6% in initial trades, while the S&P 500 and the Dow both climbed 0.3%.
PayPal leapt 14.5% on a reported bid from that payments company Stripe and private equity firm Advent.
BlackRock is among the standout S&P performers, jumping more than 7% after the world's largest asset manager reported a record US$15 trillion of assets under management.
The group attracted US$192 billion of net inflows during the second quarter as investors continued to pour money into exchange-traded funds.
Elsewhere, uniform supplier Cintas rose 4.7%, while software groups Adobe and Workday were also among the leading gainers in the Nasdaq 100.
8am: Nasdaq set to rally but Dow futures flat, PayPal climbs on bid report
US stocks appeared set for a steady start on Wednesday as investors drew confidence from strong bank earnings and a softer-than-expected inflation report the day before, even as oil prices remained elevated following fresh US strikes on Iran.
Nasdaq futures were up 0.5% ahead of the opening bell, with S&P 500 futures up 0.1%, while those for the Dow Jones were little changed.
Wall Street finished mostly higher on Tuesday after June's consumer price data came in below expectations, easing concerns that the Federal Reserve may need to raise interest rates this month.
The Nasdaq climbed 0.9% to close at 26,107.01, the S&P added 0.4% to 7,543.59 and the Dow inched 10 points or 0.02% higher to 52,508.27.
European markets were weaker in Wednesday trading, however, as slower-than-expected Chinese economic growth weighed on sentiment. London's FTSE 100 was dragged lower by miners and other cyclical stocks after China GDP expanded 4.3% in the second quarter, its slowest pace since 2023 and below the government's 4.5%-5% target range. Germany's DAX was down 0.8%.
Oil prices were trading broadly sideways following the recent surge, with WTI crude up 0.5% at just under $80 a barrel.
Investors were also watching PayPal, whose shares jumped over 18% in pre-market trading after Reuters reported that privately held Stripe had teamed up with Advent International to make a joint US$53 billion takeover approach.
Also, Nasdaq-listed ASML, the Dutch semiconductor equipment maker, is set to climb around 3.5% after raising its 2026 guidance for a second time.
Earnings from Johnson & Johnson (NYSE:JNJ), Morgan Stanley (NYSE:MS), BlackRock, Progressive and BNY are also out today.