Wall Street digested a surprisingly cool wholesale inflation reading and more big bank earnings, with one eye on Trump's latest tariff moves.

Shares in Asia traded mixed on Wednesday after an update on inflation pulled most U.S. stocks lower, though gains for Nvidia pushed the Nasdaq to another record.

“What’s at stake isn’t simply which party hands out the biggest bundle of goodies. It’s whether the walls holding up Japan’s house of debt can withstand another round of fiscal fireworks…” Stephen In...

The risk is that a hotter-than-expected June inflation report — one that Fed Chair Jerome Powell recently called among the most important for assessing the impact of tariffs — could slow the pace at which the central bank lowers interest rates. Importantly, that could also throw a wrench into the stock market’s record-setting rally.

U.S. wholesale inflation cooled last month, despite worries that President Donald Trump’s tariffs would push prices higher for goods before they reach consumers.

Inflation likely accelerated in June as sweeping tariffs on nearly all imports may have pushed up prices for electronics, appliances, and other goods, economists forecast.