On Wednesday, July 15, 2026, MSCI's global equities index rose following a surprise drop in US inflation readings and continued strong earnings reports. The Labor Department's Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand fell by 0.3% in June, defying economist expectations of no change. This softer-than-expected producer price data, alongside consumer price data released the previous day, indicated a retreat in inflation before the recent escalation in Middle East tensions.

Meanwhile, geopolitical tensions intensified as the US launched new strikes against Iran's coastal defense systems and cruise missile storage and launch sites, reimposing a naval blockade on Iranian ports. Iran responded by threatening to cut off more regional energy exports. Despite these developments, oil futures declined.

Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey, noted that while the inflation data supported stocks, investors appeared to be overlooking concerns about Iran and the fact that June's inflation figures do not reflect recent oil price increases. He commented, "We're in a market phase where bad news doesn't seem to hurt the market and bad news that isn't quite as bad as we thought it would be really helps the market."

Positive earnings reports also bolstered market sentiment. Morgan Stanley reported a second-quarter profit increase driven by strong mergers and acquisitions activity. Following these developments, major US stock indices advanced: the Dow Jones Industrial Average rose 172.89 points (0.33%) to 52,681.16, the S&P 500 increased by 12.74 points (0.17%) to 7,556.33, and the Nasdaq Composite gained 86.70 points (0.33%) to 26,193.95.

Additionally, Treasury yields fell, with the benchmark 10-year Treasury note on track for its first consecutive daily declines in nearly three weeks, reflecting easing price pressures for a second straight day.

Sources