US equities climbed after softer CPI data and reduced geopolitical tensions offset mixed earnings from financials.
US stocks advanced Wednesday as lower-than-expected inflation and a shift in trade policy boosted sentiment. The Consumer Price Index rose 3.5% year-over-year, below the 3.8% consensus forecast, easing pressure on the Federal Reserve. Financial sector earnings were mixed, with Goldman Sachs surging 9.3% while Citigroup fell 5.0%.
The S&P 500 closed 0.4% higher, though 298 of its components declined. The Nasdaq outperformed with a 0.9% gain, led by semiconductor stocks like Nvidia (+4.1%) and Intel (+4.3%). President Trump’s decision to abandon plans for 20% tariffs on Hormuz shipping further supported risk appetite.
Chipmaker ASML, Johnson & Johnson, and Morgan Stanley report earnings before Thursday’s open, setting the tone for pre-market trading. The Dow Jones Industrial Average ended flat, while the Russell 2000 added 0.4%.