US stocks hover as earnings lift and inflation data eases rate-rise expectations

U.S. equities were mostly flat on Wednesday, with the S&P 500 showing little movement while the Dow Jones Industrial Average edged up 0.1% and the Nasdaq composite rose 0.1% as of early afternoon New York time. Gains in BlackRock, which jumped 7.2% after reporting quarterly profit and revenue that exceeded forecasts, helped offset declines in several large-cap technology stocks, including Nvidia and Micron Technology, which fell 2.2% and 9.3% respectively. BlackRock CEO Laurence Fink noted that its iShares funds reached $6 trillion in assets under management during the quarter, roughly double the amount three years earlier.

Bank of New York Mellon rose 2.9% following a series of strong earnings from major U.S. banks, and Cintas climbed 4.4% after reporting quarterly results above analyst expectations. Elevance Health, despite posting better-than-expected profit and revenue, saw its shares drop 8.3%.

Data released on wholesale inflation showed the rate slowing to 5.5% in June from 6% in May, a better outcome than economists had projected. A separate consumer-price report indicated that inflation felt by households was also milder than expected. These figures have reduced market speculation that the Federal Reserve will raise its benchmark rate at the upcoming meeting, with CME Group data showing a 12% probability of a hike, down from about 42% earlier in the week.

"There are encouraging reasons to expect that inflation has peaked and should edge down in coming quarters," said John Williams, president of the New York Fed.

The comment contributed to a decline in the 10-year Treasury yield, which fell to 4.55% from 4.58% the previous day. Meanwhile, geopolitical tension over Iran’s threatened halt of regional energy exports kept oil prices volatile, with Brent crude briefly reaching $86 a barrel before settling at $84.93, up 0.2%.

International markets saw mixed moves: South Korea’s Kospi index surged 6.2% on technology gains, while European and Asian markets displayed varied performance. In the Netherlands, chip-equipment maker ASML reported revenue growth that beat forecasts, attributing the strength to continued demand from the artificial-intelligence sector.

Overall, investors remain cautious, balancing robust corporate earnings and easing inflation against lingering concerns about higher-for-longer interest rates and geopolitical risks.