Wall Street Rises on Big Bank Earnings, Softer June CPI; IBM Slides 25%

Wall Street stocks rose after strong earnings from major US banks and a softer-than-expected US inflation report, while the US dollar weakened, according to RTHK.

JPMorgan Chase reported higher profit, citing strength in financial markets and investment banking. Chief Executive Jamie Dimon said the US economy has shown “notable resiliency” so far in 2026 and that higher oil prices linked to the US-Iran war had not significantly damaged activity. Citigroup, Bank of America, Goldman Sachs and Wells Fargo also reported higher profits in the unofficial start to second-quarter earnings season.

Oil prices rose again on Tuesday but gains moderated after U.S. President Donald Trump backed down on a threat to heavily tax ships passing through the Strait of Hormuz.

US consumer prices rose 3.5% year on year in June, down from 4.2% in May, with energy costs falling while housing and food increased. Analysts had expected a 3.8% rise. Kathleen Brooks of XTB said the data reduced the chance of a rate cut at this month’s Federal Reserve meeting. Newly installed Fed Chair Kevin Warsh told a US House Financial Services Committee hearing it was too early to declare victory on inflation and said the Fed has “no tolerance” for stubbornly high prices.

In company news, IBM shares fell more than 25% after it issued disappointing preliminary second-quarter results, citing customer spending shifts tied to expected higher prices for memory chips and other AI-related infrastructure.

The S&P 500 rose 0.4% to 7,543, the Nasdaq gained 0.9% to 26,107, and the Dow added less than 0.1% to 52,508.