Stocks climb near record as cool inflation offsets rising oil prices

Stocks climbed within a whisker of records Wednesday as a softer-than-expected U.S. wholesale inflation report outweighed another jump in oil prices tied to war risk in the Middle East. The S&P 500 rose 0.4% and finished within 0.5% of its all-time high set last month, while the Dow Jones Industrial Average added about 150 points, or 0.3%, and the Nasdaq composite gained 0.6%.

The best news for investors came from the inflation data. The U.S. Bureau of Labor Statistics said its Producer Price Index for final demand fell 0.3% in June, far below economists’ expectations. Final-demand goods prices dropped 1.4%, energy prices fell 6.4%, and gasoline sank 12.0% within the measure. Even with that monthly relief, producer prices were still up 5.5% from a year earlier, a reminder that inflation has cooled without disappearing.

The contrast on trading screens was sharp. Crude oil traded around $80.24 a barrel, near its highest level in a month, and Brent crude was around $86.19, its strongest since June 12. Traders remained focused on the war with Iran and the chance that supply routes through the Middle East, including the Strait of Hormuz, could be disrupted. That kept energy costs elevated even as factory-gate inflation eased.

Earnings also helped keep the market near record territory. Morgan Stanley reported second-quarter 2026 net revenues of $21.3 billion, with earnings of $3.46 a share and return on tangible common equity of 26.6%. BlackRock also reported second-quarter results, adding to what has been a solid start to earnings season. Consumer-focused retail and travel stocks outperformed, while semiconductor shares lagged.

For households, the split message is plain: a cooler inflation reading can help support stock portfolios, retirement accounts and the Federal Reserve’s case for patience, but higher oil can still pressure gasoline bills, airline fares and shipping costs. Investors are betting that slowing inflation and strong corporate profits can carry the market through the energy shock for now.