U.S. stocks edged higher Wednesday following strong quarterly earnings reports from major companies and amid fluctuating oil prices tied to tensions in the Middle East. The S&P 500 increased by 0.2 percent, aiming for its fourth gain in five sessions, while the Dow Jones Industrial Average rose 173 points, or 0.3 percent, as of late morning trading. The Nasdaq composite also gained 0.3 percent.

BlackRock was a key driver of the market's advance, with shares climbing 7.7 percent after the investment firm posted better-than-expected profit and revenue results for the quarter. CEO Laurence Fink highlighted the rapid growth of their iShares exchange-traded funds, which surpassed $6 trillion in assets under management during the period—doubling since three years ago. Other financial sector names contributed to gains, including Bank of New York Mellon, which rose 2.9 percent following its robust earnings report. Meanwhile, Cintas, a supplier of office uniforms and facility products, gained 4.2 percent after also exceeding profit forecasts.

In contrast, Elevance Health shares dropped nearly 9 percent despite reporting strong earnings and revenue, illustrating the market’s cautious approach amid high expectations for corporate profit growth this spring. Major indexes remain near record levels, prompting investors to closely monitor upcoming earnings.

U.S. inflation data further supported the market’s positive tone. A report showed that wholesale inflation eased to 5.5 percent in June from 6 percent in May, a pace slower than economists had anticipated. This followed another recent report indicating consumer inflation was also lower than expected. Such figures reduce pressure on the Federal Reserve to raise interest rates aggressively, as tightening monetary policy could hamper economic growth and depress asset prices.

After the latest inflation reports, futures markets assigned only about a 10 percent chance that the Federal Reserve will increase its benchmark interest rate at its next policy meeting, down significantly from earlier in the week. New York Fed President John Williams echoed this sentiment, stating that inflation appears to have peaked and should gradually decline in coming quarters. The yield on the 10-year Treasury note fell slightly to 4.55 percent following his comments.

However, geopolitical risks remain amid ongoing hostilities between the United States and Iran. Tehran’s Revolutionary Guard issued a warning on Wednesday threatening to halt all energy exports from the Middle East in response to a U.S. naval blockade aimed at preventing oil tankers bound for Iran from passing through the Strait of Hormuz. The statement emphasized that regional energy exports “will be either for everyone or for no one.” Brent crude prices briefly surged above $86 per barrel but later retreated to around $83.37, down 1.6 percent from the previous day.

International equity markets saw technology shares rebound amid renewed optimism about the artificial intelligence sector. South Korea’s Kospi index soared 6.2 percent, buoyed by heavyweights Samsung Electronics and SK Hynix, after enduring significant declines earlier in the month. In Amsterdam, semiconductor equipment maker ASML reported stronger-than-expected revenue growth, with CEO Christophe Fouquet noting accelerating demand driven by AI developments. The company also issued a robust revenue forecast for the summer quarter, easing concerns about potential overheating in the AI tech market.

In China, markets showed mixed reactions following the release of second-quarter GDP data. While Hong Kong stocks rose 1.4 percent, the Shanghai Composite declined 0.3 percent after the Chinese economy expanded at an annualized rate of 4.3 percent—slower than the 5 percent growth seen in the preceding quarter. Export data provided some encouragement, with June shipments surging 27 percent year-on-year, driven largely by rising demand for chips and data-processing equipment fueled by global AI growth. China’s semiconductor exports more than doubled in value compared to the same month last year, and computer equipment shipments increased by over 53 percent.