Stocks and Bonds Rise After US CPI Matches Expectations
US equities and Treasuries advanced after July core CPI rose 0.2% month-over-month and 2.5% annually, reducing bets on a September Fed rate hike.
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US inflation data for July came in line with expectations, easing concerns that the Federal Reserve would need to raise rates again soon. Core CPI increased 0.2% month-over-month and 2.5% year-over-year.
Markets now price less than a 50% probability of a rate increase in September. The S&P 500 added 0.2%, while the Nasdaq 100 gained 0.7%, supported by strength in AI-related names.
Treasury yields declined, with the 10-year yield falling to 4.67%. Oil held near $83 a barrel, leaving some inflation risk on the table.
Source: First Squawk