Markets close higher despite hotter-than-expected inflation – Equity markets closed higher on Wednesday even after a producer price inflation (PPI) report came in above estimates, suggesting investors remain focused on resilient growth and strong corporate earnings. As widely expected, Kevin Warsh was confirmed by the U.S. Senate to become the next Federal Reserve chair, succeeding Jerome Powell, who will remain on the Fed Board for now. Bond yields rose, with the 10-year Treasury at 4.47%, likely reflecting some sensitivity to the inflation data and the likelihood that the Fed may need to keep its policy rate steady for longer. Internationally, Asian markets finished mostly higher as investors there likely focused on the Trump-Xi meeting that started today. Meanwhile, the U.S. dollar strengthened against major currencies, consistent with higher bond yields and a less-dovish interest-rate backdrop.

^{Source for all data: FactSet.}