Dow and S&P 500 Stable, Focus Shifts to Earnings
Wall Street markets fluctuated slightly after the release of the latest inflation data, which did not significantly change investors' expectations regarding the Federal Reserve's interest rate direction. Shortly after the data came out, the market received a boost due to signs of easing price pressures. However, the effect quickly subsided, causing stocks, bonds, and the dollar to return to a cautious stance.
On the stock market, major indexes moved nearly flat. At the open of trading in New York, the Dow Jones Industrial Average rose slightly to 49,616.95, the S&P 500 was at 6,977.41 (almost unchanged), while the Nasdaq Composite edged up to 23,735.12. This "calm" movement was in line with the US bond market, which also showed minimal change, as investors assessed that the inflation data was not enough to shift the Fed's outlook in the near term.
The most closely watched figure—core inflation—came out lower than expected. Core CPI rose 0.2% (MoM) and 2.6% (YoY), reinforcing signs that the inflation cooling process is still underway. However, money markets still project the next cut to be more realistic until mid-2026, and the likelihood of a cut at the Fed's meeting later this month is slim.
After a period without many macro updates, this inflation data provided the market with fresh bearings, but investor focus quickly shifted to the earnings season—especially for major banks, which began releasing results. With the index near a record, the market now awaits whether earnings will be a bigger driver than the inflation data.
Source: Newsmaker.id
