NEW YORK — U.S. stocks edged higher and the dollar fell as hopes rose for an imminent interest-rate cut, while oil futures were little changed as supply worries triggered by a tropical storm were offset by signs of a global surplus for several months.
Treasury yields rose modestly, largely unmoved by stronger-than-expected producer price data as market expectations of a U.S. interest rate cut in July held firm after two days of testimony from Federal Reserve Chair Jerome Powell.
Wall Street’s benchmark, the S&P 500, and the Dow Jones Industrial Average rose slightly after hitting records in the previous day’s session.
“We’re coasting along with the wind at our back right now after Powell’s testimony this week which points toward a rate cut in July,” said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.
The Dow Jones Industrial Average rose 142.84 points, or 0.53%, to 27,230.92, the S&P 500 gained 6.55 points, or 0.22%, to 3,006.46 and the Nasdaq Composite added 29.14 points, or 0.36%, to 8,225.18.
All three stock indexes were on track for their second weekly advance in a row ahead of the start of the second-quarter corporate earnings season. Analysts are forecasting a decline in S&P 500 earnings per share of 0.4% for the quarter, according to I/B/E/S data from Refinitiv.
“Most of the gains this year have been from multiple expansion. Earnings needs to start doing its part. Otherwise you risk people looking at multiple expansion saying this looks like a top,” said Antonelli.
The pan-European STOXX 600 index rose 0.01% and MSCI’s gauge of stocks across the globe gained 0.13%.
U.S. producer prices rose slightly in June as the cost of energy and other goods dropped for a second straight month, beating economists’ expectations that prices would be unchanged.
The Labor Department