US stock markets edged higher on Wednesday after strong quarterly earnings from major companies, while investors also reacted to fresh inflation data and rising tensions in the Middle East.The S&P 500 rose 0.2 per cent, putting it on track for its fourth gain in five sessions. The Dow Jones Industrial Average gained 173 points, or 0.3 per cent, while the Nasdaq Composite was up 0.3 per cent.Markets were also supported by fresh data showing US inflation eased further last month. Wholesale inflation slowed to 5.5 per cent in June from 6 per cent in May, against expectations of a rise. A separate report released a day earlier also showed consumer inflation was lower than economists had forecast.The softer inflation data reduced expectations that the US Federal Reserve will raise interest rates at its next policy meeting. According to CME Group data, traders now see only a 10 per cent chance of a rate hike, down sharply from nearly 42 per cent earlier this week.Following the inflation data, the yield on the benchmark 10-year US Treasury bond slipped to 4.55 per cent from 4.58 per cent on Tuesday.Despite the positive market sentiment, investors remained cautious as the conflict between the United States and Iran continued to push up concerns over global energy supplies, Associated Press reported. Iran’s Revolutionary Guard warned that energy exports from the Middle East could be disrupted if the US blockade preventing Iranian oil tankers from using the Strait of Hormuz continued.“The export of oil and gas from the region will be either for everyone or for no one,” the Revolutionary Guard said.Brent crude oil briefly rose above $86 a barrel before easing to $83.37, down 1.6 per cent from the previous session.Asian markets also posted gains, led by technology shares. South Korea’s Kospi index surged 6.2 per cent, helped by strong gains in major technology companies including Samsung Electronics and SK Hynix.In Europe, Dutch chip equipment maker ASML reported stronger-than-expected revenue growth and forecast higher sales, citing continued demand driven by artificial intelligence (AI). The results helped improve investor confidence in AI-related stocks after recent volatility.In China, Hong Kong’s Hang Seng index gained 1.4 per cent, while Shanghai’s benchmark index slipped 0.3 per cent after official data showed the country’s economy grew at an annual rate of 4.3 per cent in the second quarter, slower than the 5 per cent growth recorded in the previous quarter.
