Bonds & Stocks
Another report showing softer-than-anticipated inflation drove stocks and bonds higher as Wall Street further dialed back wagers on Federal Reserve interest-rate increases this year. The S&P 500 rose 0.4%. The yield on 10-year Treasuries declined two basis points to 4.57%.
Economy
An underlying gauge of US producer price inflation was softer than expected in June, suggesting pressures earlier in the pipeline were abating before the latest flare-up in the Iran war. The PPI excluding food and energy increased 4.7% from a year earlier, according to Bureau of Labor Statistics data out Wednesday, below the median estimate in a Bloomberg survey. Overall PPI inflation slowed in large part due to a 12% drop in gasoline prices.
World
The US launched more airstrikes on Iran on Wednesday, with President Donald Trump pledging to intensify the bombardment until Tehran stops attacking ships in the Strait of Hormuz and agrees to open the waterway.