Stan Choe, AP Business Writer
NEW YORK (AP) – The US stock index drifts over record levels Wednesday following the latest update that surpasses national inflation expectations.
The S&P 500 was virtually unchanged in early trading, falling below last week’s highest ever set. The Dow Jones industrial average rose 62 points (0.1%) as of 10am Eastern time, with the Nasdaq composite rising 0.1% from the previous day’s record set.
The Treasury Department eased in the bond market after it reported that inflation last month was slower at the wholesale level than economists expected. The data provides some encouragement after Tuesday’s report suggests that President Donald Trump’s tariffs are pushing up the prices he is paying for toys, apparel and other imported products.
Trump’s tariffs give them a sense of their weight across financial markets. ASML, the world’s leading chip-making gear supplier, warned that it cannot guarantee growth next year after achieving the expected 15% growth in 2025.
The terms still appear to be strong for ASML customers in the artificial intelligence business, but CEO Christophe Fouquet said in the video that “is largely due to macroeconomic and geopolitical considerations, which are increasing levels of uncertainty, and includes, of course, tariffs.”
The Netherlands-based ASML shares saw a 10.8% drop in US trade.
Some US bank stocks helped offset it after reporting higher earnings in recent quarter than analysts expected.
The PNC Financial Services Group rose 1.5% after a quarterly report that was better than lending, despite what CEO Bill Demchak called an “uncertain macro environment.”
Bank of America and Goldman Sachs shook between modest profits and losses after reporting better profits than analysts had expected.
Johnson & Johnson jumped 4.4%, raising both annual forecasts, after the drug and medical device giant violated analyst sales and profit targets. CEO Joaquin Duato said he expects “game-changing approval and submission” for a range of products, including lung and bladder cancer, in late 2025.
Grabagun, an online retailer of firearms and ammunition, shaking sharply on the first day of trading after appearing on the stock market under the ticker “Pew.” President Trump’s son, Donald Trump Jr., is on the company’s board of directors. Inventory quickly went from an early increase of 19% to a 31% drop before mitigating losses, and for a long time halted trading several times.
In the overseas stock market, indexes were mixed, mainly amid a modest movement.
Shares rose 0.7% in Jakarta after Trump said on Tuesday that he plans to charge 19% tariffs on imports from Indonesia, rather than the 32% he previously threatened after reaching a trade deal.
Indonesia’s central bank also cut its key interest rates by 0.25 percentage points on Wednesday to 5.25%.
“We calculated everything and discussed everything. The most important thing to me is my people, because we have to protect the interests of our workers,” Indonesian President Prabowo Suboant told reporters, adding, “This is our offer and we cannot give more (to the US).”
In the bond market, the US Treasury’s 10-year yield fell to 4.45% from 4.50% on Tuesday.
Wednesday’s encouraged report on inflation could give the Federal Reserve confidence that it could resume cut rates later this year to boost the economy.
Wall Street loves lower interest rates because prices are higher for stocks and other investments, and Trump himself calls for the Federal Reserve to cut interest rates more quickly. However, the Fed has also put on interest rates this year.
Fed Chairman Jerome Powell has argued that he wants to see more data on how tariffs affect the economy and inflation before making the move.
AP business writers Matt Ott, Kelvin Chan and Elaine Kurtenbach contributed.
Original issue: July 16th, 2025, 8:55am EDT
