US stock indices rose on Wednesday after a better-than-expected wholesale inflation report lifted hopes that the Federal Reserve may resume rate cuts later this year.The S&P 500 inched up 0.2% in early trading, nearing its all-time high set last week. The Dow Jones Industrial Average climbed 170 points or 0.4%, and the Nasdaq composite hovered near its record from Tuesday, AP reported.The gains came as US Treasury yields slipped in response to a fresh inflation reading that showed wholesale prices cooled more than expected in June. The report offered some relief after Tuesday’s data showed rising costs for imported goods — including toys and apparel — amid President Donald Trump’s sweeping tariff regime.“Wednesday’s encouraging report on inflation could give the Federal Reserve some confidence that it can resume cutting interest rates later this year,” AP noted.Among individual stocks, bank shares helped power gains. PNC Financial Services jumped 1.7% after a strong quarterly report, supported by loan growth. Bank of America and Goldman Sachs also rose over 0.5% each after beating analyst profit expectations.Johnson & Johnson surged 4.1% after the healthcare major beat Q2 sales and profit estimates and raised its full-year outlook. CEO Joaquin Duato said the company expects “game-changing approvals and submissions” in the second half for products targeting lung and bladder cancer.However, chipmaking equipment giant ASML dropped 9.7% in US trading after warning it couldn’t assure growth next year due to rising geopolitical tensions and tariffs. “The level of uncertainty is increasing, mostly due to macroeconomic and geopolitical consideration. And that includes, of course, tariffs,” CEO Christophe Fouquet said.Overseas, Jakarta’s stock index rose 0.7% after Trump softened his tariff stance on Indonesia, announcing a lower 19% levy instead of 32% following a trade deal. Indonesia’s central bank also cut its benchmark interest rate by 25 basis points to 5.25%.President Prabowo Subianto said, “The most important thing for me is my people, as I must protect the interests of our workers.”In the bond market, the yield on the 10-year US Treasury dropped to 4.46% from 4.50% on Tuesday, reflecting growing investor optimism that the Fed may find room to support the economy without stoking fresh inflation.While President Trump has repeatedly pushed the Fed to accelerate rate cuts, Fed Chair Jerome Powell has maintained a cautious stance, saying the central bank needs more data on how tariffs are impacting inflation before acting.
