Wall Street surges on soft producer inflation, robust earnings; PayPal climbs 13.58%, BlackRock soars 7.6%

US stock markets opened higher on Wednesday as investors welcomed cooler-than-expected producer inflation data and a wave of strong corporate earnings, easing concerns over the outlook for interest rates.

As of 10 a.m. Eastern Time, the S&P 500 rose 0.4%, the Dow Jones Industrial Average was up 0.4%, and the Nasdaq Composite was 0.6% higher.

At the opening bell, the Dow Jones Industrial Average rose 95.9 points, or 0.18%, to 52604.2. The S&P 500 gained 28.1 points, or 0.37%, to 7571.72​, while the Nasdaq Composite advanced 154.2 points, or 0.59%, to 26261.183.

Investor sentiment received a boost after the Producer Price Index (PPI) fell 0.3% month-on-month in June, marking its first monthly decline since August 2025. The drop was largely driven by lower energy prices during the month.

The encouraging producer inflation data followed Tuesday's softer-than-anticipated Consumer Price Index (CPI) report, reinforcing expectations that inflationary pressures are continuing to moderate.

Together, the latest inflation readings eased fears that the Federal Reserve may need to resume raising interest rates, providing support to equities across major sectors.

"The PPI numbers were another pleasant surprise," said Steve Sosnick of Interactive Brokers.

"The market is sort of looking through it a little bit, because first of all we had the good numbers yesterday and secondly because since those numbers were compiled, we've seen energy move in the wrong direction."

In the bond market, the yield on the 10-year Treasury fell to 4.56% from 4.58% on Tuesday.

Key stock movers

PayPal Holdings jumped 13.58% after reports emerged that the payments company had received a $53 billion takeover proposal.

BlackRock shares surged 7.6% after the world's largest asset manager posted quarterly profit and revenue that exceeded Wall Street expectations.

Among financial stocks, Bank of New York Mellon rose 2.5%, while Morgan Stanley gained 1% after both companies reported better-than-expected quarterly earnings.

In contrast, Elevance Health slumped 11.1%, despite delivering stronger-than-forecast profit and revenue, as investors appeared disappointed by other aspects of the company's outlook.

Energy Market

Crude oil extended gains on Wednesday as the US reimposed a naval blockade on Iran and intensified its airstrike campaign on Wednesday in retaliation for Tehran's attacks on ships trying to pass through the Strait of Hormuz.

At 1214 GMT, Brent futures gained 18 cents, or 0.2%, to $84.91 a barrel. West Texas Intermediate futures rose 26 cents, or 0.3%, to $79.60 a barrel.

The American strikes hit an Iranian army barracks, killing at least seven troops and wounding more than 260 people across the country, Iranian officials said.

Bullion

Gold prices pared earlier losses and edged up on Wednesday after US producer prices unexpectedly fell in June.

By 0858 a.m. EDT (1258 GMT), spot gold rose 0.3% to $4,067.60 per ounce. US gold futures gained 0.2% to $4,075.80.

Among other metals, spot silver dipped 0.1% to $58.58, while platinum gained 0.4% to 1,638.24. Palladium fell 0.1% to $1,303.50.