U.S. stocks edged higher Wednesday as robust earnings from major companies helped offset volatility in oil prices driven by escalating tensions in the Middle East. The S&P 500 rose 0.2 percent, positioning for its fourth gain in five sessions, while the Dow Jones Industrial Average advanced 173 points, or 0.3 percent, and the Nasdaq composite increased by 0.3 percent as of late morning trading.

BlackRock led market gains with a 7.7 percent jump after the asset management firm reported quarterly profits and revenues surpassing analyst expectations. CEO Laurence Fink highlighted that the company’s iShares funds reached over $6 trillion in assets under management, effectively doubling in size over three years. Financial sector strength was further underscored by a 2.9 percent rise in Bank of New York Mellon, following a wave of positive earnings from major U.S. banks. Cintas, a provider of uniforms and restocking products, also posted better-than-expected quarterly results, lifting its shares by 4.2 percent. In contrast, Elevance Health fell 8.9 percent despite reporting profits and revenues that exceeded forecasts, reflecting market caution.

The broader market optimism was supported by new data indicating a slowdown in inflation at the wholesale level, which decelerated to 5.5 percent in June from 6 percent in May—significantly better than economists’ projections. This follows a recent report showing consumer inflation easing more than anticipated. These readings alleviate some pressure on the Federal Reserve to raise interest rates further, which, while aimed at curbing inflation, tend to dampen economic growth and weigh on asset prices.

Market expectations for a Fed rate hike at the upcoming policy meeting have dropped sharply to around 10 percent, down from nearly 42 percent earlier in the week. Comments from John Williams, president of the New York Federal Reserve, reinforced this outlook, noting encouraging signs that inflation has peaked and is likely to decline in the coming quarters. Following the inflation data, the yield on the benchmark 10-year Treasury note fell to 4.55 percent.

Despite easing inflation concerns, geopolitical risks remain acute amid heightened conflict between the United States and Iran. The situation in the Middle East has driven swings in oil prices, with Brent crude reaching a monthly high of $86 per barrel before retreating. Iran’s Revolutionary Guard threatened to halt all energy exports from the region in response to a U.S. naval blockade restricting Iranian oil shipments through the strategic Strait of Hormuz, stating that energy exports would either continue universally or not at all.

International markets reflected mixed responses to ongoing geopolitical and economic developments. South Korea’s Kospi index surged 6.2 percent, boosted by gains in heavyweight technology companies Samsung Electronics and SK Hynix, after several recent sharp declines. In Europe, semiconductor equipment maker ASML exceeded revenue forecasts and raised its summer guidance, citing strong customer demand amid the growth of artificial intelligence technologies. This helped ease recent investor concerns about a potential slowdown in AI-related spending.

In Asia, Hong Kong stocks rose 1.4 percent, while China’s Shanghai Composite slipped 0.3 percent following the release of economic data showing China’s GDP growth slowing to an annualized rate of 4.3 percent in the last quarter, down from 5 percent at the beginning of the year.