S&P 500, Dow rise after Warsh says inflation risks have eased

By Niket Nishant and Avinash P

July 1 (Reuters) - The benchmark S&P 500 and the blue-chip Dow turned affirmative connected Wednesday arsenic investors parsed U.S. Federal Reserve Chair Kevin Warsh's comments that ostentation risks had eased.

Warsh reiterated that ‌the cardinal slope was committed to bringing ostentation down to its 2% goal, but said terms risks had travel ‌down successful caller weeks.

The remarks brought immoderate alleviation for investors who person been disquieted astir complaint hikes by the Fed, particularly arsenic the latest information shows ​that the U.S. labour marketplace remains stable, perchance giving the cardinal slope much leeway to absorption connected terms pressures.

Oil prices fell, with Brent crude down 2.1%, alleviating ostentation concerns.

Traders inactive expect astatine slightest 1 hike from the U.S. cardinal slope this year, according to information compiled by LSEG. Warsh again said helium would not springiness guardant guidance connected the interest-rate trajectory.

Separately, information from the Institute for Supply ‌Management besides showed U.S. manufacturing enactment had slowed ⁠in June but was inactive solid.

"A broadening betterment crossed manufacturing but not employment supports a cautious stance (from the Fed) arsenic terms pressures evolve," said Richard de Chazal, macro expert astatine William Blair.

At 11:51 ⁠a.m. ET, the Dow Jones Industrial Average roseate 283.37 points, oregon 0.54%, to 52,602.57, the S&P 500 gained 12.21 points, oregon 0.16%, to 7,511.57, and the Nasdaq Composite fell 81.22 points, oregon 0.31%, to 26,132.67.

In the 2nd 4th of 2026, the S&P 500 and the Nasdaq Composite ​registered ​their champion quarterly show since 2020, portion the Dow marked its champion ​showing since 2022.

WAR RISKS PERSIST

Unease surrounding U.S.-Iran tensions ‌has formed a shadiness implicit Middle East bid talks, mounting a cautious code for the 2nd fractional of the year.

Tehran said it would not conscionable with apical U.S. envoys who flew to the portion pursuing an outbreak of hostilities. Although a root with nonstop cognition of the talks arsenic good arsenic an Iranian authoritative said the U.S. and Iran held method talks successful Doha, contrasting rhetoric suggested a breakthrough whitethorn beryllium to beryllium elusive.

Repeated mendacious dawns person made the struggle hard to track, starring immoderate investors ‌to absorption alternatively connected the economy's underlying pillars.

Investors volition present look for clues ​on the wellness of the labour marketplace connected Thursday, erstwhile the nonfarm ​payrolls study for June is owed to beryllium released.

Communication ​services led the benchmark with gains of 2.5%, portion the accusation exertion scale fell 1.3%.

Semiconductors fell 5.3%, ‌while bundle shares gained 3.8%.