U.S. stocks rose broadly as June inflation data came in cooler than expected. The report eased investor concerns regarding potential Federal Reserve interest rate hikes.
Strong second-quarter earnings from major banks further lifted the S&P 500 and Nasdaq. JPMorgan Chase posted record profits for the period. Goldman Sachs results exceeded analyst estimates.
However, IBM shares suffered a historic plunge of nearly 25%. This decline erased gains for the Dow Jones Industrial Average. IBM issued a profit warning, citing a rapid shift in corporate spending from software and consulting to hardware. The company admitted it faltered in anticipating this trend. The news also weighed on other software stocks.