Update: Nasdaq, S&P 500 Rise as Inflation Drops for First Time in Six Years, Trump Reverses Plan to Impose Toll on Hormuz Cargo
(Updates with index/price moves and company/geopolitical news from the first paragraph.) US equity indexes traded mixed, with the Nasdaq Composite and the S&P 500 gaining, as the June inflation rate fell for the first time in more than six years and President Donald Trump withdrew plans to impose a levy on cargo transiting the Strait of Hormuz in the Persian Gulf. The tech-heavy Nasdaq advanced 0.7% to 25,918.2, with the S&P 500 climbing 0.4% to 7,543.4 and the Dow Jones Industrial Average up less than 0.1% to 52,518.3 after midday Tuesday. Financials and technology led gainers, while healthcare was the steepest decliner. IBM's (IBM) shares sank 25%, the steepest decline on the Dow and the S&P 500, after the tech giant issued Q2 guidance below Wall Street expectations. The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, reportedly the first decline since 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics. Core CPI, which excludes food and energy prices, held steady, compared with the consensus estimate.
(Updates with index/price moves and company/geopolitical news from the first paragraph.) US equity indexes traded mixed, with the Nasdaq Composite and the S&P 500 gaining, as the June inflation rate fell for the first time in more than six years and President Donald Trump withdrew plans to impose a levy on cargo transiting the Strait of Hormuz in the Persian Gulf.
The tech-heavy Nasdaq advanced 0.7% to 25,918.2, with the S&P 500 climbing 0.4% to 7,543.4 and the Dow Jones Industrial Average up less than 0.1% to 52,518.3 after midday Tuesday.
Financials and technology led gainers, while healthcare was the steepest decliner.
IBM's (IBM) shares sank 25%, the steepest decline on the Dow and the S&P 500, after the tech giant issued Q2 guidance below Wall Street expectations.
The US seasonally adjusted consumer price index fell by 0.4% month-over-month in June, reportedly the first decline since 2020, compared with expectations for a 0.1% decrease in a Bloomberg-compiled survey and following a 0.5% increase in May, according to data released Tuesday by the Bureau of Labor Statistics.
Core CPI, which excludes food and energy prices, held steady, compared with the consensus estimate.