Update: Equities Rise Following CPI Data, Big Bank Earnings
(Updates with market moves at the end of the day.) US stocks advanced Tuesday as investors cheered cooler-than-expected consumer inflation data and digested big banks' earnings reports. The Nasdaq Composite closed 0.9% higher at 26,107, while the S&P 500 rose 0.4% to 7,543.6. The Dow Jones Industrial Average settled just above the flatline at 52,508.3. 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..
(Updates with market moves at the end of the day.) US stocks advanced Tuesday as investors cheered cooler-than-expected consumer inflation data and digested big banks' earnings reports.
The Nasdaq Composite closed 0.9% higher at 26,107, while the S&P 500 rose 0.4% to 7,543.6.
The Dow Jones Industrial Average settled just above the flatline at 52,508.3.
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..