US Stocks Rise as Traders Welcome CPI
US stocks traded higher on Tuesday, with the three major averages up about 0.5%, as the latest CPI report bolstered expectations of a Fed rate cut next month. Headline annual inflation held at 2.7% in July, below the 2.8% forecast, while core inflation accelerated more than expected to 3.1%.
The figures indicated that tariff-related price pressures remain limited so far, giving the Fed room to deliver a 25 bps cut in September. Rate-cut odds, which were at 88% late yesterday, have now climbed to nearly 93%. Sentiment was also lifted after President Trump extended the suspension of steep tariffs on Chinese goods for another 90 days, through November 10, with Beijing announcing a matching extension.
All sectors traded in positive territory, led by communication services, while energy lagged. On the corporate front, Intel gained 1.1% after President Trump praised CEO Lip-Bu Tan following earlier criticism. Meta rose 2.5% and Circle jumped more than 10% on strong Q2 revenue growth.
Source: Newsmaker.id
