CPI Cooled, Wall Street Immediately Gains
The US stock market closed higher on Tuesday (July 14th) after lower-than-expected inflation data came out. This data further strengthened the market's confidence that the Fed would not raise interest rates this month.
The S&P 500 index rose 0.4%, the Nasdaq rose 1.1%, while the Dow Jones Industrial Average edged higher. The gains occurred because headline and core inflation both slowed, alleviating concerns about rising energy prices due to the US-Iran conflict.
Chip stocks again led the rally after being under pressure in the previous trading session. Nvidia jumped 4.1%, Broadcom rose 1.3%, and Micron rose 4.9%. This rebound demonstrates the continued strength of investor interest in the technology and AI sectors.
The banking sector also recovered after a brief period of weakness. JPMorgan rose 2.5% after posting its strongest quarterly profit in its history. Bank of America rose 1.8%, while Citi fell 5.3% after releasing its financial results.
Goldman Sachs was one of the big winners, surging 9% after its performance beat market estimates. However, IBM plunged 25.2% after falling short of expectations and warning of weakening client spending, as many companies prioritized investments in chips and memory.
As a result, Wall Street received a strong boost from a cooler CPI and a reduced likelihood of a Fed rate hike. However, investors should still monitor oil prices and the Middle East conflict, as if energy pressures rise again, inflation concerns could resurface. (yds)
Source: Newsmaker.id
