Wall Street closed higher on Wednesday as investors welcomed another round of cooler-than-expected inflation data, sending all three major indexes into positive territory. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each notched gains after June producer price data came in softer than economists had forecast, adding to Tuesday’s encouraging consumer inflation reading. Strong bank earnings and a batch of upbeat tech results also gave investors reasons to keep buying, even as a handful of individual stocks moved sharply in the other direction.
What Moved Markets
The Dow Jones Industrial Average rose 150.91 points, or 0.29%, to close at 52,659.18. The S&P 500 added 28.82 points, or 0.38%, finishing at 7,572.41. The Nasdaq Composite outperformed with a gain of 162.22 points, or 0.62%, ending the session at 26,269.23.
The rally was driven largely by the June Producer Price Index, which fell a seasonally adjusted 0.3% versus expectations for no change, while core PPI rose just 0.2%, below the 0.3% consensus estimate. Combined with Tuesday’s cooler consumer price report, the data reinforced hopes that inflation pressures are easing. The Federal Reserve’s Beige Book and testimony from Fed Chair Kevin Warsh before Congress also kept investors focused on the path for interest rates. Meanwhile, second-quarter bank earnings from Morgan Stanley, BlackRock, PNC Financial Services, and Bank of New York Mellon generally topped estimates, and strong results from chip equipment maker ASML helped extend the AI-driven rally in technology shares.
Notable Movers
PayPal Holdings (PYPL) surged nearly 20% after a report surfaced that the payments company had received a takeover offer valuing it at more than $53 billion.
Apple (AAPL) climbed about 4% to a new all-time high, leading gains among the mega-cap technology names alongside Amazon (AMZN) and Alphabet (GOOGL), both up roughly 3%, and Microsoft (MSFT), which rose nearly 3%.
Morgan Stanley (MS) gained just under 1% to $230.31 after beating Wall Street’s second-quarter earnings estimates.
On the downside, SpaceX shares fell to a new all-time low near $133.59, dropping below the company’s IPO price for the first time and extending a decline of roughly 34% from its recent highs.
Pentair (PNR) tumbled more than 20% after the water treatment company cut its second-quarter and full-year 2026 guidance and announced the resignation of its chief financial officer. Chipmakers were mixed to lower, with Micron Technology (MU) falling about 8% and Lam Research (LRCX) down roughly 3%.
Looking Ahead
Investors head into the rest of the week watching for more clues on the Fed’s next move, with additional economic data and corporate earnings likely to shape sentiment. More big bank and industrial earnings are on deck, along with continued scrutiny of AI-related capital spending after another strong showing from semiconductor and software names. Retail investors will also want to keep an eye on inflation trends heading into the back half of the year, as cooler price data has become a key support for the market’s recent gains. Any signs that the trend is reversing, or fresh volatility tied to individual stock news like today’s PayPal and SpaceX moves, could quickly shift the market’s tone.