Equity Markets Mostly Rise Intraday After Inflation Data, Bank Earnings
US benchmark equity indexes were mostly higher intraday as traders assessed the latest inflation data and quarterly results of banking giants. The Nasdaq Composite was up 1.1% at 26,150.9 after midday Tuesday, while the S&P 500 rose 0.5% to 7,551.2. The Dow Jones Industrial Average fell 0.1% to 52,469.6. Among sectors, technology paced the gainers, while healthcare saw the biggest drop. The US consumer price index declined 0.4% in June, its first monthly drop since May 2020 and the largest decline since April 2020, amid lower energy costs, official data showed. The consensus in a Bloomberg-compiled survey was for the index to move down by 0.1%. Annually, inflation cooled to 3.5% last month from May's 4.2%, compared with expectations for a 3.8% print. "Investors and the Federal Reserve will breathe a sigh of relief at the size of the improvement in the inflation numbers last month, likely keeping an imminent rate hike off the table later this month," BMO said in a note. There's now an 83% likelihood that the Fed will keep its monetary policy unchanged at its July meeting, up from 58% Monday, according to the CME FedWatch tool. The odds of a 25-basis-point rate increase slid.
US benchmark equity indexes were mostly higher intraday as traders assessed the latest inflation data and quarterly results of banking giants.
The Nasdaq Composite was up 1.1% at 26,150.9 after midday Tuesday, while the S&P 500 rose 0.5% to 7,551.2.
The Dow Jones Industrial Average fell 0.1% to 52,469.6.
Among sectors, technology paced the gainers, while healthcare saw the biggest drop.
The US consumer price index declined 0.4% in June, its first monthly drop since May 2020 and the largest decline since April 2020, amid lower energy costs, official data showed.
The consensus in a Bloomberg-compiled survey was for the index to move down by 0.1%.
Annually, inflation cooled to 3.5% last month from May's 4.2%, compared with expectations for a 3.8% print. "Investors and the Federal Reserve will breathe a sigh of relief at the size of the improvement in the inflation numbers last month, likely keeping an imminent rate hike off the table later this month," BMO said in a note.
There's now an 83% likelihood that the Fed will keep its monetary policy unchanged at its July meeting, up from 58% Monday, according to the CME FedWatch tool.
The odds of a 25-basis-point rate increase slid.