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US Equity Markets End Higher After Unexpected Decline in Producer Price Index

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US equity indexes closed higher Wednesday after an unexpected drop in producer prices.

* The US producer price index fell 0.3% in June following a 0.6% increase in May, below the flat consensus in a Bloomberg survey.

* The US intensified airstrikes against Iran following Tehran's attacks on ships attempting to pass through the Strait of Hormuz, the Associated Press reported.

* August West Texas Intermediate crude oil rose $0.92 to settle at $80.26 per barrel, while September Brent crude, the global benchmark, was last seen up $1.02 at $85.75.

* Payments firm Stripe and Advent International offered to acquire PayPal (PYPL) for $60.50 a share in a deal valuing the company at more than $53 billion, Reuters reported. PayPal shares jumped 17%, the top gainer on the S&P 500.

* Pentair (PNR) shares fell 15%, the biggest drop on the S&P, a day after the company reported preliminary Q2 results below market estimates and lowered its full-year outlook.

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US Equity Markets End Higher on Cooling Inflation, Trump's Strait of Hormuz Toll Reversal

US equity indexes closed higher Tuesday after the June inflation rate fell and President Donald Trump withdrew plans to impose a toll on vessels transiting the Strait of Hormuz as a US reimbursement fee.* The US seasonally adjusted consumer price index in June fell 0.4% from a month earlier, compared with expectations for a 0.1% decrease in a Bloomberg survey and following a 0.5% increase in May, government data showed.* August West Texas Intermediate crude oil rose $1.54 to settle at $79.68 per barrel, while September Brent crude, the global benchmark, was last seen up $1.92 at $85.22.* Goldman Sachs (GS) shares rose 9.1%, the second-biggest gain on the S&P 500, after Q2 results beat analysts' estimates.* IBM (IBM) shares tumbled 25%, the largest drop on the S&P, after preliminary Q2 results fell short of market expectations, with CEO Arvind Krishna calling the performance "disappointing."

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Update: US Equity Indexes Mixed as IBM Sell-Off Hits Dow, Cooling Inflation Eases Interest-Rate Pressure

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes traded mixed as a sell-off in IBM (IBM) shares restrained the Dow Jones Industrial Average, while the Nasdaq Composite and the S&P 500 rose after the steepest drop in inflation in more than six years sent government bond yields sharply lower.The tech-heavy Nasdaq advanced 1.1% to 26,146.1, with the S&P 500 up 0.5% to 7,550.2 ahead of Tuesday's close. The Dow Jones Industrial Average bucked the trend, trading steady at 52,547.8.Interest-rate sensitive sectors, technology, and communication services, led gainers amid a broad-based rally. Healthcare, consumer staples, and real estate were the only decliners. IBM shares sank 24%, the most on the Dow and the S&P 500, after the tech giant issued Q2 guidance below analysts' expectations.Looking at gains from the top 20 companies with market capitalizations exceeding $200 billion, half were from the semiconductor industry, according to data compiled by Finviz. The top gainer was SK Hynix, up 24%, following its Nasdaq debut last Friday.The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, the steepest drop since April 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the 0.2% growth estimate, in line with May's growth.US Treasury yields fell, with the 10-year down 3.7 basis points to 4.58% and the two-year lower by 7.4 basis points to 4.19%.The probability of the Federal Reserve leaving its policy unchanged in July soared to 83% following the inflation data, from 58% a day ago, the CME FedWatch tool showed Tuesday. The likelihood of the policy pause continuing across September, October, and December also surged.Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait of Hormuz, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."There will be a "FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," Trump said on Truth Social. US Central Command says it will restart its naval blockade at 4 p.m. ET, CNN reported.The front-month global benchmark North Sea Brent rose 2.2% to $85.09 a barrel, and the US West Texas Intermediate was up 1.9% to $79.59 a barrel, albeit both crude types were off session highs.

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Update: Nasdaq, S&P 500 Rise as Inflation Drops for First Time in Six Years, Trump Reverses Plan to Impose Toll on Hormuz Cargo

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes traded mixed, with the Nasdaq Composite and the S&P 500 gaining, as the June inflation rate fell for the first time in more than six years and President Donald Trump withdrew plans to impose a levy on cargo transiting the Strait of Hormuz in the Persian Gulf.The tech-heavy Nasdaq advanced 0.7% to 25,918.2, with the S&P 500 climbing 0.4% to 7,543.4 and the Dow Jones Industrial Average up less than 0.1% to 52,518.3 after midday Tuesday.Financials and technology led gainers, while healthcare was the steepest decliner. IBM's (IBM) shares sank 25%, the steepest decline on the Dow and the S&P 500, after the tech giant issued Q2 guidance below Wall Street expectations.The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, reportedly the first decline since 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the consensus estimate of 0.2% growth, in line with May's increase.US Treasury yields fell, with the 10-year down 4.1 basis points to 4.57% and the two-year lower by 7.6 basis points to 4.19%.Meanwhile, President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States."There will be a "FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," Trump said on Truth Social.The front-month global benchmark North Sea Brent rose 1.9% to $84.91 a barrel, and the US West Texas Intermediate climbed 1.2% to $79.10 a barrel, off session highs.

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