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15.07.202613:39:51UTC+00US Stocks Move Higher

US stock indices advanced on Wednesday amid signs that the conflict involving Iran has so far been less inflationary than feared. The S&P 500 rose 0.4%, while both the Dow Jones Industrial Average and the Nasdaq 100 hovered just above the flatline.

Headline and core producer prices increased less than expected in June, reinforcing yesterday’s soft CPI report and further reducing the likelihood that the Federal Reserve will raise interest rates at its upcoming meeting. These data helped counterbalance upward pressure from energy markets as investors weighed the risk of further escalation in strikes between the US and Iran. Yields moved higher, but robust corporate earnings supported broad gains in equities.

The heavyweight AI sector benefited from strong guidance from ASML, which helped lift AMD and Intel by about 2% each. However, volatility persisted in the memory segment, with Micron and SanDisk falling around 3%.

In financials, Morgan Stanley gained 1% after reporting upbeat results, extending the positive tone set by JPMorgan, Bank of America, Citi, and Goldman Sachs, all of which delivered strong earnings yesterday.

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