Finance

Strong quarterly results from major financial institutions like Goldman Sachs and Bank of America provided a significant boost to the Dow Jones Industrial Average, which had been under pressure from a record 25% single-day drop in IBM shares. The collective profit of the five largest U.S. banks reached $49 billion, driven by robust deal-making and trading activity.

In his first congressional testimony, Federal Reserve Chairman Kevin Warsh pledged to make high inflation a thing of the past but maintained a cautious tone, noting that a single month of positive data does not signify mission accomplished. Following the cooling CPI print and Warsh's remarks, traders reduced the implied probability of a July rate hike to just 17%.

Oil prices retreated and Treasury yields slipped after the U.S. scrapped plans for a shipping fee in the Strait of Hormuz, easing concerns over a potential conflict with Iran. The 10-year Treasury yield fell to approximately 4.58%, as the combination of cooling inflation and reduced geopolitical risk premiums led investors to scale back bets on aggressive central bank tightening.