U.S. Stocks, Bonds Rally on Soft CPI; Crude Oil Gains
U.S. equities and Treasuries rose after June CPI came in softer than expected, reducing bets on a near-term Fed rate hike. Crude oil climbed but stayed below $80 a barrel after Trump abandoned plans for a Strait of Hormuz shipping fee.
U.S. stocks and bonds rallied on Wednesday after the June consumer price index report came in softer than anticipated, dampening expectations that the Federal Reserve will raise rates in the near term. The Nasdaq 100 gained 1.1%, while Treasury yields declined.
In the commodities space, West Texas Intermediate crude oil edged higher but remained below the $80-per-barrel threshold. The move came after former President Donald Trump dropped proposals to impose a shipping fee on vessels passing through the Strait of Hormuz.
Investors are now shifting their attention to the upcoming corporate earnings season and signs that inflation pressures are easing. The data provided a tailwind for risk assets across the board.
Source: First Squawk