U.S. stocks closed mostly higher on Thursday as a sharper-than-expected drop in consumer prices eased rate-hike concerns and major banks topped earnings forecasts. The S&P 500 rose 0.4% and the Nasdaq climbed 0.9%, while the Dow Jones edged up 10 points.
The June Consumer Price Index fell 0.4% from May, marking the steepest monthly decline since April 2020, and the annual rate cooled to 3.5%. Rate-hike expectations for this month fell to 16% from 42% before the data. Fed Chair Kevin Warsh struck a measured tone in congressional testimony.
JPMorgan Chase, Bank of America, and Goldman Sachs reported stronger-than-expected results. PayPal surged 17% on a $53 billion buyout offer from Stripe and Advent. IBM tumbled 25% after a disappointing earnings update. President Donald Trump announced a reinstated naval blockade on Iran, pushing oil prices higher.