U.S. inflation slowed by seven-tenths percentage points to 3.5% in June.
Wall Street ended Tuesday’s session in positive territory, with the Dow Jones Industrial Average edging up 0.02% after new data showed that annual inflation in the United States eased to 3.5%.
At the close of trading on the New York Stock Exchange, the Dow stood at 52,508 points. The S&P 500 climbed 0.38% to 7,543 points, while the technology-focused Nasdaq advanced 0.9% to close at 26,107 points.
According to the latest Consumer Price Index (CPI) report, U.S. inflation slowed by seven-tenths percentage points to 3.5% in June, following a drop in energy prices. The reading came in below analysts’ expectations of 3.7%, which had reflected concerns over inflationary pressures stemming from higher fuel costs following the conflict with Iran.
Core inflation, which excludes volatile food and energy prices, also eased to 2.6%, in June from 2.9% in May, according to the Bureau of Labor Statistics (BLS).
Following the release of the inflation data, the CME Group’s FedWatch tool indicated the probability that the Federal Reserve (Fed) will raise interest rates at its next meeting in July stands at 17%.
Skyler Weinand, chief investment officer at Regan Capital, told CNBC that it is “likely” that inflation figures will “keep rates unchanged for now,” although he cautioned that “almost all of the statements issued by Fed Chairman (Kevin) Warsh have so far been hawkish.”
Semiconductor stocks continued to lead the market’s gains like: Micron Technology rose 4.92%, VanEck Semiconductor rose 2.5%, and STMicroelectronics NV rose 2.42%.
Meanwhile, major banks and financial institutions reported their earnings today, and at the close of trading, Goldman Sachs rose 9%, JPMorgan 2.5%, and Bank of America 1.88%.
In other markets, West Texas Intermediate (WTI) crude oil rose 1.54% on Tuesday to $79.34 per barrel after U.S. President Donald Trump reversed his decision to impose a 20% tax on all ships transiting the Strait of Hormuz, just one day after announcing it.
