The Dow advanced 231.49 points (0.5%) to 44,254.78, the Nasdaq rose 52.69 points (0.3%) to 20,730.49 and the S&P 500 climbed 19.94 points (0.3%) to 6,263.70.

Producer prices were flat in June after a 0.3% rise in May. Annual PPI growth slowed to 2.3%, easing inflation worries. The Fed is still expected to hold rates until September. Meanwhile, U.S. industrial production rose more than expected in June. This signals ongoing economic strength.

ASML shares moved sharply lower after the semiconductor equipment maker warned it may see no growth in 2026. Morgan Stanley (MS) too moved downwards despite reporting second quarter results that exceeded analyst estimates on both the top and bottom lines. Johnson & Johnson (JNJ) surged after reporting better than expected second quarter results and raised its full-year guidance.

Pharmaceutical stocks was significantly strong on the upbeat J&J earnings, driving the NYSE Arca Pharmaceutical Index up by 1.6%. Biotechnology and healthcare stocks were notably strong with the NYSE Arca Biotechnology Index advancing by 1.5% and the Dow Jones U.S. Health Care Index climbing by 1.2%. Energy stocks came as the price of crude oil saw further downside, dragging the Philadelphia Oil Service Index and the NYSE Arca Oil Index down by 1.5% and 1.3%.

Asia-Pacific stocks moved mostly lower. Japan's Nikkei 225 Index and China's Shanghai Composite Index closed just below the unchanged line while Hong Kong's Hang Seng Index dipped by 0.3%. The major European markets too moved downside while the French CAC 40 Index slid by 0.6%, the German DAX Index slipped by 0.2% and the U.K.'s FTSE 100 Index edged down by 0.1%.

In the bond market, treasuries regained ground after moving notably lower on Tuesday. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.4 bps to 4.45%.

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