S&P 500 Edges 0.35% Higher on Easing Inflation, Bank Earnings on Wednesday

U.S. stock indices ended higher on Wednesday as cooler-than-expected producer prices fueled hopes for moderating inflation. The S&P 500 added 0.35% to close at 7,570.30, while the Dow Jones Industrial Average rose 0.26% to 52,647.23. The Nasdaq 100 declined 0.62% to 29,401.46.

The Producer Price Index for June fell 0.3% month-over-month, the largest decline in over a year, easing concerns about inflation persistence. Strong earnings from major banks including Morgan Stanley and BlackRock, along with semiconductor equipment maker ASML's solid results, supported the broader market. Separately, PayPal surged on reports of a potential $53+ billion take-private offer from Stripe and Advent International, according to Bloomberg.