U.S. equity markets commenced trading on a positive note, with all three major indices showing gains after the market open. The S&P 500 advanced 16.51 points, or 0.26%, to reach 6,260.27. The Dow Jones Industrial Average climbed 155.06 points, or 0.35%, to 44,178.35, while the NASDAQ Composite increased by 48.54 points, or 0.24%, to 20,726.34.
Economic data released today showed a stronger-than-anticipated performance in U.S. industrial production for June. Total industrial production rose by 0.3% month-over-month, exceeding the prior month's revised figure of 0.0%. Manufacturing output also saw a modest increase of 0.1%, contributing to an overall capacity utilization rate of 77.6%.
In corporate news, German defense and automotive technology company Rheinmetall (RHM) is reportedly looking to sell its automotive division, according to Handelsblatt. Meanwhile, Bank of America (BAC) CEO Moynihan stated that the firm has conducted extensive work on stablecoins and expects the company and the broader industry to advance in this space, indicating potential partnerships.
Geopolitical developments are also impacting global markets. Energy officials reported that drone strikes in Iraqi Kurdistan have led to a reduction in oil production by 140,000 to 150,000 barrels per day. In the Middle East, the IDF Chief has ordered a diversion of forces to the North, and a political source indicated U.S. involvement in de-escalation efforts with Syria.
Trade tensions remain a concern, with market watchers warning that former President Trump might not back down from imposing 30% tariffs on the European Union. Separately, the EU has proposed a draft budget close to EUR2 trillion for the period of 2028-2034. In the banking sector, Fitch noted that French bank profits are expected to recover further following the latest Livret A rate cut, while a Bank of England Executive Director emphasized the importance of moderate reserves.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.